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:

James Madison

The fourth President of the United States and a key figure in the drafting of the U.S. Constitution and the Bill of Rights.

Constitution

Basic tenets or traditional norms that dictate how a government or similar entity is managed.

Anti-Federalist

Individuals who opposed the ratification of the United States Constitution in 1787-1788, fearing that it granted too much power to a central federal government at the expense of states' rights.

Ratification Debates

The intense discussions and arguments that took place around the adoption of the United States Constitution, highlighting the divide between Federalists, who supported the Constitution, and Anti-Federalists, who opposed it.