A Hedge Fund in Which a Significant Proportion of Its

question 12

Multiple Choice

A hedge fund in which a significant proportion of its portfolio is invested in other hedge funds is referred to as which of the following?

• A)pooled fund
• B)container fund
• C)short-sale fund
• D)fund of funds
• E)diversification fund

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Definitions:

Average Tax Rate

The percentage of gross income that goes towards tax payments, determined by dividing the sum of taxes paid by the gross income.

Taxable Income

The amount of income used to calculate how much the government can tax an individual or a corporation.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the impact of additional income on tax liability.

State Finance

Refers to the management of a government's revenue, expenditures, and debt load through various practices, including budgeting, taxation, and fiscal policy.