Question
4. Bernie just sent a $500,00 payment to Madkoff's Magical Hedge Fund (MMHF). Bernie is confident that he will not lose any of his initial
| 4. | Bernie just sent a $500,00 payment to Madkoff's Magical Hedge Fund (MMHF). Bernie is confident that he will not lose any of his initial investment because | |
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| A) | The sales literature from MMHF declares that no past investor has ever lost their original principal. |
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| B) | The Security and Exchange Commission (SEC) has more regulatory oversight in the hedge fund industry than it does over any other industry. |
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| C) | Bernie doesn't understand the hedge fund industry and should stick to those investments that he does understand. (None of the other answers is correct). |
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| D) | It is insured by the Federal Deposit Insurance Corporation (FDIC) |
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| E) | The hedge fund industry is not allowed to invest in any securities that will decrease in value. |
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