Which of the Following Is Not a Characteristic of Hedge

question 60

Multiple Choice

Which of the following is not a characteristic of hedge funds?

• A)They are generally unregulated and normally restricted to high net worth individuals
• B)They are not dependent on increasing stock prices,but rather a strategy of buying,selling and executing arbitrage positions
• C)Managers normally receive 20 percent of the profits generated
• D)Investors are often contractually locked in for two or three years on their investment
• E)They are prohibited from using derivatives in their investment strategies

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Definitions:

Time

A continuous progression of existence and events in the past, present, and future regarded as a whole.

Algebraic Expression

An expression consisting of numbers, variables, and operations but no equal signs.

Algebraic Expression

A mathematical phrase that can contain numbers, variables, and operation symbols but no equals sign.

Evaluate

The process of calculating the value of an expression or determining the outcome of a mathematical operation.