A hedge fund is similar to a mutual fund in that it invests funds on behalf of clients.Select the notable difference between hedge funds and mutual funds from the following choices?

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Hedge funds do not publicly offer their securities, whereas mutual funds are offered to the public. This is a notable difference between the two types of investment funds. Hedge funds also typically cater to more sophisticated and wealthy investors, who have higher levels of risk tolerance and larger investment amounts. Hedge funds are not required to register under U.S. federal securities law and have more flexibility in their investment strategies compared to mutual funds.

A Hedge Fund Is Similar to a Mutual Fund in That