Which type of financial institution receives money in the form of investments by wealthy individuals and endowments and invests in any kind of investment with an attempt to maximize returns for relatively low risk?

Question

Quizplus · Accepted Answer

Hedge funds receive money from high net worth individuals and endowments and invest in a variety of assets such as stocks, bonds, commodities, and derivatives with the goal of generating high returns while minimizing risk. They have more flexibility than mutual funds in terms of investment strategies and can employ leverage and short-selling techniques. This makes them a good choice for sophisticated investors looking for higher returns with potentially lower risk. Pension funds invest in a diversified portfolio of assets to achieve long-term growth, whereas venture capital and private equity funds invest in early-stage or private companies.

Which Type of Financial Institution Receives Money in the Form