Which of the following are characteristics of a hedge fund?
I. Pooling of assets
II. Strict regulatory oversight by the SEC
III. Investing in equities, debt instruments, and derivative instruments
IV. Professional management of assets
A) I and II only
B) II and III only
C) III and IV only
D) I, III, and IV only

Question

Quizplus · Accepted Answer

Hedge funds are characterized by the pooling of assets from investors, investing in a wide range of instruments including equities, debt, and derivatives, and being professionally managed. They are subject to less regulatory oversight by the SEC compared to other investment vehicles like mutual funds, making option II incorrect.

Which of the Following Are Characteristics of a Hedge Fund