Which of the Following Is True Regarding Hedge Funds

question 11

Multiple Choice

Which of the following is true regarding hedge funds?

• A) They are more liquid than mutual fund shares
• B) They are generally less restricted in how and where they can invest
• C) They have no limitations on when and how often investment capital can be distributed or removed
• D) All of the above
• E) None of the above

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Definitions:

Coupon Rate

The percentage of face value paid as interest on a bond each year.

Current Yield

The interest or dividend income an investment generates, expressed as a percentage of the investment's current market price.

Face Value

The original value of a financial instrument as stated on the certificate or contract.

Market Price

represents the current price at which an asset or service can be bought or sold in the market.