Which of the following statements regarding the hedge funds (HES) are true? 1. Similar to mutual funds, HFs charge an annual management fee of 1 to 2% of assets under management. II. On top of the management fees, HF advisors also earn a performance fee (typically 20 to 25% of the earned return) if a certain performance benchmark is met. III. Theoretically, HFs are designed to engage in risk arbitrage strategies, often involving spreads in multiple markets. Therefore, most of HFs adopt low-risk hedging strategies. IV. HFs employ high leverage to take advantage of perceived" mispricings. If markets move in the unexpected direction, HFs can endure huge losses. Select one: Activ Gato a. I and II ob. I. II and IV 11. On top 20 to 25% of the earned return) III. Theoretically, HFs are designed to engage in risk arbitrage involving spreads in multiple markets. Therefore, most of His adopt low-risk strategies. IV. His employ high leverage to take advantage of perceived" mispricings. If markets move in the unexpected direction, HFs can endure huge losses. Select one: a Land II b. I, II and IV c. I, II and III d. II, III, and IV e. All of them