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

Understand the process and implications of transactions involving the receipt of cash, including advance payments and the provision of services.

Understand the debit and credit rules in accounting.

Identify the process of recording and posting transactions in accounting records.

Recognize the accounts that increase with debits and those that increase with credits.

---

Definitions:

National Security

Measures and policies implemented by a nation to protect against threats to its sovereignty, safety, and economic well-being.

Silicon Chips

Small pieces of semiconductor material, typically silicon, used in the manufacturing of electronic circuits and devices.

Quota Rent

The difference between the demand price and the supply price at the quota limit; this difference, the earnings that accrue to the license-holder, is equal to the market price of the license when the license is traded.

Domestic Demand

The total demand for goods and services within a country, including both consumer and governmental purchases.