Which of the Following Statements About Hedge Funds Is Not

question 53

Multiple Choice

Which of the following statements about hedge funds is not true?

• A) They sell shares to wealthy individuals and financial institutions.
• B) They charge high management fees.
• C) They require a large initial investment.
• D) They are exposed to very little risk.

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Definitions:

Economists

Professionals who study how societies use available resources to produce valuable commodities and distribute them among different people.

Short Supply

indicates a situation where the availability of a product or resource is less than the demand for it, often leading to higher prices.

Forests

Large areas covered predominantly with trees and undergrowth, playing crucial roles in the Earth's ecosystem including carbon storage and habitats for biodiversity.

Acreage

The area of land measured in acres, often used in the context of agricultural land use.