Which of the Following Is (Are) True About Hedge Funds

question 72

Multiple Choice

Which of the following is (are) true about hedge funds?
I. They are open to institutional investors.
II. They are open to wealthy individuals.
III. They are more likely than mutual funds to pursue simple strategies.

• A) I and II only
• B) I and III only
• C) II and III only
• D) I, II, and III

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Definitions:

Exact Interest

A method of calculating interest based on a 365-day year or the actual number of days in a year.

365-Day Year

A method used in finance that assumes a year has 365 days and is used for calculating interest rates or other financial metrics.

Total Amount

The complete sum of money required or received, often including principal, interest, taxes, and fees.

Ordinary Interest

Interest calculated on the basis of a 360-day year, which is commonly used in calculating interest for loans, mortgages, and bonds.