Asked by Sydney Henke on Jul 11, 2024

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Verified

______ must periodically provide the public with information on portfolio composition.

A) Hedge funds
B) Mutual funds
C) ADRs
D) Hedge funds and ADRs
E) Hedge funds and mutual funds

Portfolio Composition

The mix of different types of investments held in an investor's portfolio, determined based on their risk tolerance, investment goals, and time horizon.

  • Understand the regulations governing hedge funds and their effects on ensuring transparency and protecting investors.
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Verified Answer

ML
Mackenzie LagroveJul 18, 2024
Final Answer :
B
Explanation :
Mutual funds are required by regulatory authorities to periodically disclose their portfolio compositions to the public, ensuring transparency for investors. Hedge funds, in contrast, are not obligated to disclose their portfolios regularly due to their private nature. ADRs (American Depositary Receipts) represent shares in foreign companies and are not investment funds, so the requirement does not apply to them.