Question

A private partnership whose shares are primarily offered to wealthy individuals and large institutions and which often makes high-stakes bets on the direction of the market is called:
a. A mutual fund
b. An annuity
c. The net asset value
d. A hedge fund
e. None of the above

Answer 1

Answer:

The correct answer is letter "D": A hedge fund.

Explanation:

A hedge fund is a private investment fund that almost exclusively markets itself for rich investors. Since middle and lower classes are normally unable to invest in hedge funds due to financial limitations, hedge funds have traditionally been permitted to operate under considerably lower regulatory oversight by the Securities and Exchange Commission (SEC).