1. Between 1997&2000 the total assets under management by Hedge Funds grew by 34% but between 2000&2003 they grew by 67%. What is the most likely explanation for this sudden increase in growth? A. Hedge Fund returns were much higher in the second period. B. Poor equity market returns drove investors to look for alternative investments. C. Changes in regulation. D. The collapse of LTCM 2. Hedge Funds are generally structured as partnerships, the principal reason for this is: A. To avoid SEC regulation B. To align the incentives of the manager with the investors C. To provide investors with pass through tax treatment D. To ensure all investors share an equal proportion of profits \& losses 3. What is a gate? A. A restriction placed on a hedge fund investor limiting the amount of withdrawals from the fund during a redemption period B. A type of account used to separate illiquid assets from other more liquid investments. C. A separate account owned, controlled or overseen by the investor D. An agreement to charge lower fees to institutional investors than to individual investors. 4. Which of the following is a role of a Prime Broker? A. Calculation of Net Asset Values \& Fees B. Maintenance of Partnership's books and records C. Processing subscription applications D. Clearing Trades