Differences Between Hedge Funds and Mutual Funds Are That

question 23

Multiple Choice

Differences between hedge funds and mutual funds are that

• A) hedge funds are only subject to minimal SEC regulation.
• B) hedge funds are typically open only to wealthy or institutional investors.
• C) hedge fund managers can pursue strategies not available to mutual funds, such as short selling, heavy use of derivatives, and leverage.
• D) hedge funds are commonly structured as private partnerships.
• E) All of the options.

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Definitions:

Double-Blind

An experimental procedure in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Randomly Assigned

A method used in experiments where participants are allocated to different groups or conditions in a way that is determined by chance.

Control

The capacity to shape or guide the actions of individuals or the progression of situations.

Operational Definition

A clear, precise description of a variable in terms of the processes or operations used to measure or manipulate it.