Expected Return 2398 20% 15% 10% 5% 0% F In 0%

Hedge fund incentive fees are essentially   Multiple Choice A straddles. B put options on the portfolio with a strike price equal to the expected future portfolio value. C call options on the portfolio with a strike price equal to the expected future portfolio value. D call options on the portfolio with a strike price equal to the current portfolio value times one plus the benchmark return.      Only typed answer and don't use chat gpt

Please answer fast

Assume that markets are efficient. Give 2 reasons why you cannot retire all portfolio managers / financial analysts and simply rely on a random choice via computer to select securities for your portfolio.