SIE practice questioneasyHedge Funds
Which is a typical characteristic of hedge funds?
- ALimited liquidity for investors✓ Correct answer
- BDaily pricing at NAV
- CRegulated as open-end investment companies
- DNo management fees charged
Explanation
Why A — Limited liquidity for investors
Hedge funds often have limited liquidity and restrictions on withdrawals. They are not mutual funds (B, C) and usually charge both management and performance fees (D).
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