Asked by Priscila Troche on May 10, 2024
Verified
A ______ is a nondepository financial institution that has the ability to provide higher returns,albeit with greater risk.
A) yearling
B) blue chip
C) hedge fund
D) mutual fund
Hedge Fund
A Hedge Fund is a private investment fund that uses complex strategies in both domestic and international markets with the goal of generating high returns.
Nondepository Financial Institution
Financial entities that do not accept traditional deposits like a bank, but may offer other financial services such as investment, insurance, and retirement plans.
- Comprehend the mechanics of the stock market and its constituent parts.
- Become knowledgeable about various financial instruments and transactions.
Verified Answer
CB
Camille BlackMay 16, 2024
Final Answer :
C
Explanation :
Hedge funds are nondepository financial institutions known for their ability to potentially provide higher returns through riskier investment strategies compared to traditional investment vehicles.
Learning Objectives
- Comprehend the mechanics of the stock market and its constituent parts.
- Become knowledgeable about various financial instruments and transactions.
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