Hedge funds can invest in various investment options which not generally available to mutual funds. These include ______.
I. futures and options
II. merger arbitrage
III. currency contracts
IV. companies undergoing Chapter 11 restructuring and reorganization
A. I only
B. I and II only
C. I, II, and III only
D.I, II, III, and IV .

Respuesta :

Answer: D.I, II, III, and IV .

Explanation:

Hedge Funds are a form of Financial Partnerships where people pool money together and invest in various instruments. What sets them apart from Mutual funds is that they legally have the right to invest in just about anything, and they do.

Hedge Funds are very Aggressive in investing because they aim to make above average profits for their partners and indeed the only thing that normally reduces their investment scope is their own mandate or set limitations.

As such Hedge funds are allowed to invest in futures and options, merger arbitrage, currency contracts, and companies undergoing Chapter 11 restructuring and reorganization etcetera.