Which of the Following Statements Is(are)correct Concerning Hedge Funds

question 112

Multiple Choice

Which of the following statements is(are) correct concerning hedge funds?
I.they are highly regulated.
II.they hedge all positions to limit risks.
III.management and other fees are extremely low compared to other types of funds.
IV.access is limited to institutions and high net worth or high income individuals.

• A) I, II and III only
• B) II and IV only
• C) IV only
• D) I, II, III, and, IV

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Definitions:

Marginal Cost Curve

A graphical representation showing the change in the total cost of producing one additional unit of a product.

Fixed Costs

Costs that do not vary with the level of output, such as rent, salaries, and equipment maintenance.

Optimal Level

The most favorable or advantageous point, level, or condition in a process or activity, often involving the maximization of efficiency or profit.

Market Demand

This refers to the total demand for a product or service by all consumers in a particular market.