5-89 the Hedge Fund Industry Is Built on the Theory

5-89 The hedge fund industry is built on the theory that

A) a profit can always be made if each investment has an off-setting position to cover any losses.
B) proper diversification can be attained with larger sums of money and fewer assets.
C) wealthy individuals should be expected to make more informed investment decisions and can take on higher levels of risk.
D) strategies such as program trading and arbitrage are only successful if leverage (borrowed funds) are used.
E) it takes money to make money.