Asked by Meera Patel on May 17, 2024
Verified
A typical traditional initial investment in a hedge fund generally is in the range between ________ and ________.
A) $1,000; $5,000
B) $5,000; $25,000
C) $25,000; $250,000
D) $500,000; $1,000,000
Initial Investment
The amount of money used to start an investment, which can influence the future return and risk level of the investment.
- Recognize the financial requirements for investments in hedge funds, including the typical initial investment range.
Verified Answer
MM
Michelle MartinezMay 17, 2024
Final Answer :
D
Explanation :
Traditional hedge funds often require a substantial initial investment, typically ranging from $500,000 to $1,000,000, to ensure that investors are of a certain financial standing and can assume the associated risks.
Learning Objectives
- Recognize the financial requirements for investments in hedge funds, including the typical initial investment range.
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