A hedge fund in which a significant proportion of its portfolio is invested in other hedge funds is referred to as which of the following?
A)pooled fund
B)container fund
C)short-sale fund
D)fund of funds
E)diversification fund

Question

Quizplus · Accepted Answer

A fund in which a significant proportion of its portfolio is invested in other hedge funds is called a fund of funds. This provides diversification by giving investors exposure to a variety of different strategies and managers through a single investment.

A Hedge Fund in Which a Significant Proportion of Its