The limited memberships and high dollar minimums for hedge funds means that these funds are
A)subject to weaker regulation than other mutual funds.
B)more stringently regulated for fear of collapse.
C)limited in the types of assets they can purchase.
D)under the control of the U.S. Treasury.

Question

Quizplus · Accepted Answer

Hedge funds are subject to weaker regulation than other mutual funds due to their limited memberships and high investment minimums, which typically restrict their investor base to accredited investors and institutions. This allows them more flexibility in their investment strategies.

The Limited Memberships and High Dollar Minimums for Hedge Funds