Unlike mutual funds, hedge fundsA) allow private investors to pool assets to be managed by a fund manager.B) are commonly organized as private partnerships.C) are subject to extensive SEC regulations.D) are typically only open to wealthy or institutional investors.E) are commonly organized as private partnerships and are typically only open to wealthy or institutional investors.

Question

Unlike mutual funds, hedge fundsA)  allow private investors to pool assets to be managed by a fund manager.B)  are commonly organized as private partnerships.C)  are subject to extensive SEC regulations.D)  are typically only open to wealthy or institutional investors.E)  are commonly organized as private partnerships and are typically only open to wealthy or institutional investors.

Karynn Adams · Accepted Answer

Final Answer : E, Explanation :  Hedge funds are often organized as private partnerships and have restrictions that limit their investors to wealthy individuals and institutional investors, distinguishing them from mutual funds which are more accessible to the general public and are subject to more extensive regulations.

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