ch of the following defines a hedge fund the most?  1. A collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. 2. A negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets. 3. A diversified portfolio that typically does not limit the number of shares it can offer, and they are bought and sold on demand. 4. A type of investment fund that trades in relativel

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following defines a hedge fund the most? 

1. A collective investment model based on issuing a fixed number of shares which are not redeemable from the fund.

2. A negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets.

3. A diversified portfolio that typically does not limit the number of shares it can offer, and they are bought and sold on demand.

4. A type of investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio construction and risk-management techniques to improve performance. 

 
 
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Hedge fund is larger pool of investment that are collected from large number of investors and managed by highly dedicated managers.

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