Question

What are some of the similarities and differences among mutual​ funds, pension​ funds, and hedge​ funds?

​(Select all the choices that​ apply.)

A.

Mutual​ funds, pension funds and hedge funds are all financial institutions involved with helping savers and investors reach their financial goals.

B.

Unlike mutual funds and pension funds which serve investors of all​ means, hedge funds are primarily designed for wealthy investors and endowments.

C.

Pension​ funds, which are similar to mutual funds in that they buy​ stocks, bonds and other financial instruments on behalf of its​ investors, is primarily concerned with providing retirement income. Mutual funds allow investments to be accumulated and withdrawn for a variety of financial goals.

D.

Hedge funds are highly regulated funds which are restricted from investing in many risky categories of investments.

Answer 1

Ans A, B, C

A. Mutual​ funds, pension funds and hedge funds are all financial institutions involved with helping savers and investors reach their financial goals.

B. Unlike mutual funds and pension funds which serve investors of all​ means, hedge funds are primarily designed for wealthy investors and endowments.

C.Pension​ funds, which are similar to mutual funds in that they buy​ stocks, bonds and other financial instruments on behalf of its​ investors, is primarily concerned with providing retirement income. Mutual funds allow investments to be accumulated and withdrawn for a variety of financial goals.