SIE practice questionhardHedge Funds vs Mutual Funds - Disclosure
Compared to mutual funds, hedge funds are less likely to:
- AProvide frequent and detailed portfolio disclosure to investors✓ Correct answer
- BUse leverage
- CLimit access to accredited investors
- DCharge performance-based fees
Explanation
Why A — Provide frequent and detailed portfolio disclosure to investors
Hedge funds are not subject to the same disclosure requirements as mutual funds. B, C, and D are characteristics more common in hedge funds.
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