1.Which of the following is not an advantage of exchange-traded funds (ETFs)?

_____

A)High return and low risk

B)Low expense ratio

C)Ease of buying and selling

D)None of the above

2.If a hedge fund manager focuses on short-selling of stocks, he would

_____

A)Invest in company stock for short-term profits

B)Borrow money to invest in stocks

C)Invest in companies with high future growth prospects

D)Select companies where the future supply of securities may exceed demand

3.Hedge funds often seek to take advantage of market inefficiencies such as

_____

A)High transaction costs

B)Pricing differentials between derivative contracts and the underlying security

C)Similar prices in different geographic locations

D)Technological developments aiding informational efficiencies