What Does a Hurdle Rate Specified by a Hedge Fund

Multiple Choice

What does a hurdle rate specified by a hedge fund indicate?

A) The maximum number of investors possible in the fund that would allow it to avoid regulations.
B) The minimum amount required to be invested in the fund.
C) The net worth criterion for an individual to be deemed an "accredited investor."
D) The highest net asset value that the fund has previously achieved, above which the manager receives a performance fee.
E) The minimum annualized performance benchmark that must be realized before a performance fee can be assessed.