1.You invest $12,500 in Fund VSML at the start of the year.The fund has a front-end load of 3% and an annual expense fee of 2.25% of the ending asset value at year end.You expect the fund to have a gross rate of return of 8% this year.With your investment, what is your expected value in one year?

A.$12,125.20

B.$13,095.00

C.$12,654.80

D.$12,800.36

E.$13,162.50

2.Hedge funds are ______ transparent than mutual funds because of ______ strict SEC regulation on hedge funds compared to mutual funds.

A.more; more

B.more; less

C.less; less

D.less; more

E.none of the above can be stated for certain

3.Hedge funds charge both expense fees and performance fees.The average performance fee on hedge funds in recent years has been ____________.

A.5%

B.10%

C.15%

D.20%

E.25%

4.Hedge funds are permitted to invest in or engage in

A.distressed firms

B.convertible bonds

C.currency speculation

D.merger arbitrage

E.all of the above

5.The risk profile of hedge funds ______, making performance evaluation ______.

A.can shift rapidly and substantially; challenging

B.can shift rapidly and substantially; straightforward

C.is stable; challenging

D.is stable; straightforward

E.none of the above