2. A hedge fund manager generated a 15% return (after fees) last year. Funds indexed to the S&P 500 used as his benchmark earned 13%. Taking the opportunity cost of equity capital into account, what was the fund manager's total return?

   	a.	3 percent
   	b.	-2 percent
   	c.	12 percent
   	d.	13 percent
   	e.	2 percent

0.5 points   

QUESTION 8

2. To maximize the net benefit of performing an activity (such as studying for a test), you should continue to perform the activity (study) until the total benefit equals the total cost, thus guaranteeing the maximal net benefit from the activity.

   True

   False

Answer rating: 100% (QA)

The detailed answer for the above question is provided b... View the full answer