SIE practice questionmediumHedge Funds
Compared to mutual funds, hedge funds are generally:
- ARequired to register with the SEC under the Investment Company Act of 1940
- BOffered to retail investors with daily liquidity
- CLess regulated and more flexible in investment strategies✓ Correct answer
- DLimited to investing in stocks and bonds only
Explanation
Why C — Less regulated and more flexible in investment strategies
Hedge funds are generally less regulated than mutual funds and can use more flexible strategies, including leverage and short selling. They are usually limited to accredited or sophisticated investors.
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