1.Question 12

An investor may prefer a single hedge fund to a fund of funds if he seeks

Lower investment risk

due diligence expertise.

better redemption terms.

a less complex fee structure.

Question 13

ETFs can be fully invested and do not need to maintain cash like MFs, which can have an impact on performance. This negative impact is known as:

Holdings transparency

Trading expense ratios

Management expense ratios

Cash drag

Question 14

Which of the following is FALSE when comparing ETFs with mutual funds?

I. ETFs typically have lower taxable gains distributions than mutual funds

II. Mutual funds allow short selling. ETFs do not.

III. ETFs have lower management fees. Mutual fund management fees vary but are generally higher.

IV. Both mutual funds and ETFs are priced at the end of the trading day.

II, III & IV

I & III

I, III & IV

II & IV