All of the Following Are Differences Between Hedge Funds and Mutual

question 8

Multiple Choice

All of the following are differences between hedge funds and mutual funds EXCEPT

• A)hedge funds are largely unregulated.
• B)hedge funds consist of a relatively number of wealthy investors.
• C)hedge funds make risky investments that mutual funds cannot make.
• D)hedge funds use money collected from savers to make investments.

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Definitions:

Normal Distribution

This refers to a probability distribution where symmetry around the mean indicates higher frequency of data points near the mean than those far from it.

Average Annual Revenue

This refers to the amount of money a company earns in a year, on average, from its operations.

Standard Deviation

A metric indicating the extent to which data points diverge from the mean, showing the distribution's spread.

Average Annual Revenue

The mean income generated by a business, entity, or asset within one fiscal year.