Question
When calculating an investor's after-fee return, what fee is usually applied before the performance fee?
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Answer
The management fee is deducted first.
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Question
What is IRR in alternative investments?
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Answer
The discount rate equating capital calls' PV to distributions' PV.
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Question
How do smoothed returns distort appraisal of alternative investments?
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Answer
They understate volatility and overstate risk-adjusted performance.
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Question
What does distribution mean in the alternative investment life cycle?
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Answer
Cash or proceeds are returned to investors.
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