The Term Hedge Fund Is Associated with Common Characteristics

question 25

Multiple Choice

The term hedge fund is associated with common characteristics. Which of the below is NOT one of these common characteristics?

• A) organized as private investment partnerships or offshore investment corporations
• B) use a wide variety of trading strategies involving position-taking in a range of markets
• C) employ an assortment of trading techniques and instruments, often including short-selling, derivatives and leverage
• D) pay performance fees to their managers; and have an investor base comprising modest-income individuals

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