Which of the following statements best describes hedge funds?
A) Hedge funds are risky, although they may be market-neutral.
B) Hedge funds open to everyone.
C) Hedge funds have low risk because they hedge their investments.
D) Hedge funds are legal only in Canada, but they are not permitted to operate in Europe or Asia.

Question

Quizplus · Accepted Answer

Hedge funds are typically known for taking on risky investments, although some may attempt to offset the risk by being market-neutral. Hedge funds are not open to everyone, as they typically require high minimum investments and are only available to accredited investors. While hedge funds may use hedging techniques, this does not necessarily mean that they have low risk. Lastly, the legality of hedge funds varies by country and region, and they are not exclusively limited to Canada.

Which of the Following Statements Best Describes Hedge Funds