US hedge funds:
A)do not use financial leverage
B)hedge risk exposures to minimise the risks to investors
C)are also referred to as 'mutual funds'
D)aggressively pursue high returns
E)only charge performance-based fees.

Question

Quizplus · Accepted Answer

US hedge funds are known for aggressively pursuing high returns, often through high-risk investment strategies. They are not traditionally considered mutual funds, and while they may use financial leverage, their primary goal is to hedge risk exposures to minimize risks to investors. Hedge funds also typically charge both management and performance-based fees.

US Hedge Funds