A publication of the Securities and Exchange Commission (SEC) notes that to invest in a hedge fund,

Question:

A publication of the Securities and Exchange Commission (SEC) notes that to invest in a hedge fund, “you generally must be an accredited investor.”
a. What is an accredited investor?
b. The publication also notes that hedge funds often use leverage and that “the use of leverage can turn an otherwise conservative investment into an extremely risky investment.” Briefly explain what this observation means.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Money Banking And The Financial System

ISBN: 1801

3rd Edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

Question Posted: