Hedge Funds Differ from Open-End Mutual Funds in the Sense

question 31

Multiple Choice

Hedge funds differ from open-end mutual funds in the sense that

• A)they require a much smaller initial investment.
• B)they are open to additional investments at any time.
• C)they do not accommodate investors who want to sell their shares back to the fund.
• D)they invest in very limited set of securities.

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Definitions:

Donee Beneficiary

In contract law, a third party who benefits from a contract between two other parties, particularly when the benefit was intended as a gift.

Promisee

The person to whom a promise or commitment is made, especially in the context of a contractual agreement.

Promisor

An individual or entity that makes a promise or agreement to perform a specified action in a contract.

Contractual Rights

The specific entitlements and obligations that are established within a contract, allowing the parties involved to enforce the terms legally.