Hedge funds differ from open-end mutual funds in the sense that
A)they require a much smaller initial investment.
B)they are open to additional investments at any time.
C)their investors cannot sell shares back to the fund at any time they desire.
D)they invest in very limited set of securities.

Question

Quizplus · Accepted Answer

Hedge funds typically have restrictions on when investors can sell their shares back to the fund. This is known as having less liquidity than open-end mutual funds, which allow investors to buy and sell shares at any time. The other options are not accurate, as hedge funds often have high initial investment requirements and can invest in a wide range of securities.

Hedge Funds Differ from Open-End Mutual Funds in the Sense