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What Type of Funds Are Typically No-Load Funds That Impose

question 1

Multiple Choice

What type of funds are typically no-load funds that impose no penalty for early withdrawal and generally allow holders to write cheques against their account?

Definitions:

Risk-Return Trade-Off

The principle that potential return rises with an increase in risk, describing the balance between the desire for the lowest possible risk and the highest possible returns.

Leverage

The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

Hedge Fund Advantage

A benefit unique to hedge funds, often referring to their ability to employ diverse and complex strategies to achieve higher returns compared to traditional investment vehicles.