Hedge funds and REITS often employ significant amounts of leverage,but standard open-end mutual funds do not.
Mutual fund leverage is limited by regulation.

Question

Quizplus · Accepted Answer

This is true. Open-end mutual funds are subject to regulations that limit the amount of leverage they can employ. This is done to protect investors in the fund from excessive risk and potential losses. Hedge funds and REITs, on the other hand, have more flexibility in their use of leverage.

Hedge Funds and REITS Often Employ Significant Amounts of Leverage,but