Unlike mutual funds where their leverage is limited by regulation, hedge funds and REITs often have high leverage.

Question

Quizplus · Accepted Answer

Hedge funds and REITs (Real Estate Investment Trusts) often utilize high leverage as part of their investment strategies, which is not as heavily regulated as the leverage limits imposed on mutual funds. This allows them to amplify their investment capabilities and potential returns, but also increases their risk.

Unlike Mutual Funds Where Their Leverage Is Limited by Regulation