Question

What are the key differences between mutual funds and hedge​ funds? A. Mutual fund activities are more transparent and provide a list of the assets that the particular mutual fund owns. Hedge funds are generally less regulated and take more risks for higher returns.    B. Hedge funds are usually partnerships with a relatively small number of wealthy​ investors, whereas mutual funds usually involve large number of small investors. C. A and B are correct. D. Neither​ A, nor B is correct.

Answer 1

Answer:

C. A and B are correct.

Explanation:

This can be seen on the minimum amount that both Mutual funds and Hedge fund require for people to start their investment.

On average, you can open a mutual fund account with only $2,500 as minimum investment. Most Hedge Fund on the other hand require more than $1,000,000 as minimum investment.

This made it impossible for people to enter Hedge Fund unless you're already considered as 'Wealthy'.