Since closed-end investment companies acquire securities in efficient financial markets, they

Question 11 options:

	a)	cannot outperform the market consistently
	b)	should not outperform the market consistently
	c)	will underperform the market when security prices decline
	d)	primarily bear unsystematic risk

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Question 12 (2.5 points)

If a closed-end investment company specializes in the securities of one sector of the economy, systematic risk is reduced.

Question 12 options:

	a)	True
	b)	False

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Question 13 (2.5 points)

Hedge funds are sold primarily to high net worth investors and financial institutions such as pension plans.

Question 13 options:

	a)	True
	b)	False

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Question 14 (2.5 points)

Hedge funds follow investment strategies such as

Question 14 options:

	a)	acquiring shares in mutual funds
	b)	shorting