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Basic Question 1 of 4
Which statement is true?
B. Most hedge funds report a NAV at the end of each week.
C. Investments in a typical hedge fund are much less liquid than investments in a typical mutual fund.
A. Hedge funds are entirely not regulated.
B. Most hedge funds report a NAV at the end of each week.
C. Investments in a typical hedge fund are much less liquid than investments in a typical mutual fund.
User Contributed Comments 3
| User | Comment |
|---|---|
| ankurwa10 | Hedge Funds, even though LESS regulated, still are regulated. As for B, it really depends on the frequency specific to a particular Hedge Fund (and given the liquidity of asset classes they trade), could very well be weekly. The answer discounts B as an option because it says "most" HFs, so it may very well be factually true. nothing conceptual here. |
| Inaganti6 | Got this wrong. In case of doubt in the CFA, always choose the answer that is unconditionally true (relative to other answer options). D'OH! |
| ascruggs92 | ^Yep. I think they intentionally give us options that will sound correct if you take the time to overthink it. Not chill! |
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Learning Outcome Statements
analyze sources of risk, return, and diversification among hedge fund investments
CFA® 2024 Level I Curriculum, Volume 5, Module 6.