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3 years ago

What is the MOST important item to disclose to a customer who invests in a fund of hedge funds?

Business

1 answer:

sergejj [24]3 years ago

5 0

Answer:

A. The illiquidity of the investment

Explanation:

This rightly could be considered as the MOST important item to disclose to a customer who invests in a fund of hedge funds. Let's imagine a customer who invests in a hedge fund and a few days later feels he could take back out from his investment, only to learn about the illiquid nature of hedge fund investment.

For clarity, to say that hedge funds are illiquid means that they require all investors to keep their money in the fund for at least one year, often called the lock-up period. With certain limitations on withdrawals.

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3 years ago

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3 years ago

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2 years ago

Cullumber, Inc., management expects the company to earn cash flows of $12,900, $16,300, $18,600, and $19,800 over the next four

maxonik [38]

Answer:

Total= $77,153

Explanation:

Giving the following information:

Cullumber, Inc., management expects the company to earn cash flows of $12,900, $16,300, $18,600, and $19,800 over the next four years.

The discount rate is 10%.

To calculate the future value, we need to use the following formula for each cash flow:

FV= PV*(1+i)^n

Cf1= 12,900*1.1^3= 17,169.9

Cf2= 16,300*1.1^2= 19,723

Cf3= 18,600*1.1= 20,460

Cf4= 19,800

Total= $77,153

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3 years ago