6. Are the following statements true or false? Why? Make sure you explain your answers briefly (6 points in total)

a. Hedge fund make highly risky investments therefore they are subject to more stringent regulations than mutual funds

.b. An investment bank is a financial institution but not a financial intermediary.

c. Derivative transactions are designed to increase risk and are used almost exclusively by speculators who are looking to capture high returns

d. When we talk about market efficiency, we refer to cost efficiency of the market

e. A equity REIT (Real Estate Investment Trusts) specialize in the investment of mortgage loans and mortgage backed securities

f. A SPAC stands for Special Purpose Acquisition Company, its sole purpose is to merge with an unlisted (private) firm and take it public.