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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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A financial researcher at a capital management company is analyzing the compensation structures of different hedge funds. Historically, the researcher notes that the incentive fees have predominantly benefited hedge fund managers, often to the detriment of investors, thereby deterring potential investors from committing their funds. In light of this issue, many hedge funds have recently adjusted their fee structures to attract new investments. Which of the following actions accurately reflects one of these changes in their fee arrangements?

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