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Exam Series 6 All Questions

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Exam Series 6 topic 1 question 264 discussion

Actual exam question from FINRA's Series 6
Question #: 264
Topic #: 1
[All Series 6 Questions]

Which of the following statements about hedge funds is true?

  • A. They are fairly low risk since the portfolio managers use investment strategies designed to "hedge their bets."
  • B. They are not regulated by the Investment Company Act of 1940.
  • C. They are considered to be very liquid investments.
  • D. They have low management fees, like index funds.
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Suggested Answer: B 🗳️
The true statement about hedge funds is that they are not regulated by the Investment Company Act of 1940. They are very risky, are illiquid- investors may only make contributions and withdrawals at specified times-and they have extremely high management fees.
by lolojepu at April 6, 2025, 1:29 a.m.

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