EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 26, Problem 2PS
Summary Introduction
To determine:
The reasons which make the incentive fee to affect the manager's proclivity for including in the high-risk assets in the portfolio.
Introduction:
The managers are being motivated to invest in a risky asset or include risky assets in the portfolio and such motivation is done by way of giving higher volatility and giving more incentive fees.
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