Several Features Distinguish Hedge Funds from Traditional Mutual Funds, Including

question 50

Multiple Choice

Several features distinguish hedge funds from traditional mutual funds, including:

• A) Mutual funds have a minimum investment requirement of $1,000 or more; hedge funds have no minimum investment requirement.
• B) Hedge funds typically charge investors large fees relative to mutual funds.
• C) Hedge fund investors need not commit their money for more than a few weeks at a time, explaining why they pay higher fees.
• D) Hedge funds are significantly less risky relative to mutual funds.