Carried interest is I. the fee paid to the fund manager that is in excess of the amount contributed by the manager. II. the incentive portion of the private equity manager's compensation. III. the interest earned on loans made by the private equity investor. IV. the management fee earned by the venture capital investor that is called interest because that grants a tax advantage.

1) III and IV only

2) II, III and IV

3) I, II and IV

4) I and II only

5) I, II, III and IV