Which One of the Following Correctly Applies to Hedge Funds

question 1

Multiple Choice

Which one of the following correctly applies to hedge funds?

• A) highly liquid
• B) must be highly diversified
• C) available to the general public
• D) vast array of investment objectives
• E) limited investment options

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Definitions:

Net Income

A financial metric indicating the amount of revenue that remains as profit for a period after all expenses and taxes have been paid.

Common Stock

A form of investment indicating a stake in a corporation, which bestows upon its owners the right to vote and receive a portion of the company's earnings through dividends.

Net Cash

The amount of cash available after deducting cash outflows from cash inflows.

Investment Activity

Investment activity involves the allocation of capital to assets or projects with the expectation of generating future returns, contributing to a company's growth or financial health.