Which of the Following Is Correct with Regard to Hedge

question 326

Multiple Choice

Which of the following is correct with regard to hedge funds?

• A) Historically, they have been bought only by conservative investors who don't have a lot of money to invest.
• B) Hedge funds avoid risky practices like short-selling and leveraging.
• C) Hedge funds are not as closely regulated as mutual funds.
• D) Management fees in hedge funds are much lower than for mutual funds.
• E) All of these are correct.

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Definitions:

Timely And Accurate

Describes information or processes that are delivered or completed within an expected time frame and with precision or correctness.

Accounting Information System

A system consisting of people, processes, and technology that manages financial data and supports business decisions.

Cost Effectiveness

An evaluation measure to determine how effectively a party is achieving its objectives relative to the costs incurred.

Human Involvement

Human involvement indicates the participation or role of individuals in a process or system, often highlighting the importance of human input and decision-making.