An article in the Economist magazine remarks that the average hedge fund is unlikely to earn more

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An article in the Economist magazine remarks that the average hedge fund is unlikely to earn more than the average mutual fund, and “since their fees are higher, the result will be disappointing returns for the average investor.”

a. What is a hedge fund?

b. Are “average investors” able to invest in hedge funds? Briefly explain.

c. Why are the fees hedge funds charge higher than the fees mutual funds charge?

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Money Banking And The Financial System International Edition

ISBN: 978-1292000183

2nd Edition

Authors: R. Glenn Hubbard ,Anthony P Obrien

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Question Posted: Mar 16, 2024 11:00 PM

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An article in the Economist magazine remarks that the average hedge fund is unlikely to earn more

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a A hedge fund is an investment fund that pools capital from accredited investors and institutional investors to employ a wide range of investment strategies aimed at generating positive returns regar...View the full answer

Money Banking And The Financial System International Edition

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