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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! |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
analyze sources of risk, return, and diversification among hedge fund investments
CFA® 2026 Level I Curriculum, Volume 5, Module 6.