Management and administrative expenses will result in a fund manager’s (a) net return being greater than...
Management and administrative expenses will result in a fund manager’s
(a) net return being greater than the gross return.
(b) reducing his gross performance ex post alpha.
(c) gross return being greater than the net return.
(d) increasing his beta.
Homework Answers
Option C is correct.
Management & Administrative Expenses will result in a fund manager's gross return being greater than the net return.
As Management & Administrative Expenses are part of Indirect Expense resulting in reduction of Net Return.
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