Which of the Following Statements Is CORRECT

question 11

Multiple Choice

Which of the following statements is CORRECT?

• A) Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States.
• B) Hedge funds have more in common with commercial banks than with any other type of financial institution.
• C) Hedge funds have more in common with investment banks than with any other type of financial institution.
• D) Hedge funds are legal in the United States, but they are not permitted to operate in Europe or Asia.
• E) The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds, and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.

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Definitions:

Multi-Attribute Model

A psychological model used to predict customer's attitudes or behavior towards a product or brand, based on the weighted sum of its attributes.

Attributes

Characteristics or features that can be used to describe or differentiate objects, products, or individuals.

Scholarly Reputation

The regard or esteem attributed to an individual or institution based on academic achievements or contributions to a field of study.

Importance Weights

A concept in decision-making and analysis that refers to the relative significance or contribution of various factors or criteria in evaluating outcomes or making choices.