Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

• A) In Europe and Asia hedge funds are legal, but they are not permitted to operate in the United States.
• B) Hedge funds have more in common with commercial banks than with any other type of financial institution.
• C) Hedge funds have more in common with investment banks than with any other type of financial institution.
• D) In the United States hedge funds are legal, but in Europe and Asia they are not permitted to operate.
• E) The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds, and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.

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Definitions:

Movie Editors

Professionals responsible for selecting, trimming, and sequencing film footage to create the final version of a movie.

P-value

A statistical measure that indicates the probability of observing the data, or something more extreme, under the null hypothesis.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, used as a benchmark to decide whether an observed result is statistically significant.

Hypotheses Testing

In statistics, a method that utilizes information from a sample group to evaluate a presumption about a population's parameter.