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A young adult beneficiary who has recently gained control over their inheritance, which primarily consists of liquid assets, seeks advice from an investment advisor regarding potential investment opportunities. During their meeting, the beneficiary expresses a keen interest in understanding different types of investment funds, with an emphasis on hedge funds. Which of the following statements made by the investment advisor would be correct?
A
Market timing skills of indexed fund managers are more important than market timing skills of hedge fund managers.
B
Demands of institutional investors regarding the privacy of their investments have caused hedge funds to become less transparent over time.
C
Leveraging of investor capital and shorting securities are practices that are used more extensively by hedge funds than by most conventional funds.
D
Hedge funds must disclose their investment strategies to existing and prospective clients but exchange-traded funds do not have to.