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John Invested in a Market Neutral Hedge Fund, While Mary

Question 52

Multiple Choice

John invested in a market neutral hedge fund, while Mary invested in a S&P 500 index fund. Relative to John's investment, Mary's investment is expected to have:


A) greater market risk and greater management fees.
B) greater market risk but less management fees.
C) less market risk but greater management fees.
D) less market risk and less management fees.

Correct Answer:

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