A hedge fund pays its general partner an incentive allocation equal to 20% of the gains it achieves annually, above the highest net asset value previously achieved. The highest previous value is often called

A hedge fund pays its general partner an incentive allocation equal to 20% of the gains it achieves annually, above the highest net asset value previously achieved. The highest previous value is often called

A hedge fund pays its general partner an incentive allocation equal to 20% of the gains it achieves annually, above the highest net asset value previously achieved. The highest previous value is often called 





A) the performance base
B) the high water mark
C) the incentive floor
D) the risk-free rate









Answer: B