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NEW QUESTION: 1
Which of the following is true about a hedge fund?
A. It is closed to all but sophisticated, wealthy investors.
B. It is more liquid than almost any investment other than a money market mutual fund.
C. It has very low management fees since it is passively managed.
D. It is designed to help investors hedge their risk and, as such, is a low risk alternative to a mutual fund.
Answer: A
Explanation:
A hedge fund is closed to all but sophisticated, wealthy investors. Hedge fund managers
engage in riskier strategies than mutual fund managers. They are fairly illiquid; the redemption of shares
is restricted. They are actively managed, and management fees are much higher than those charged by
other types of funds.
NEW QUESTION: 2
A. Option C
B. Option D
C. Option A
D. Option B
Answer: A
Explanation:
Explanation
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