Which of the following is (are) true about hedge funds?
I. They are open to institutional investors.
II. They are open to wealthy individuals.
III. They are more likely than mutual funds to pursue simple strategies.

Question

Quizplus · Accepted Answer

Hedge funds are generally open to institutional investors and wealthy individuals, but not necessarily to retail investors. While some hedge funds may pursue simple strategies, they are known for utilizing more complex and sophisticated strategies compared to mutual funds, which makes statement III false. Therefore, the correct choices are I and II only.

Which of the Following Is (Are) True About Hedge Funds