MYLAB ECONOMICS WITH PEARSON ETEXT -- A
MYLAB ECONOMICS WITH PEARSON ETEXT -- A
5th Edition
ISBN: 2819260099840
Author: Mishkin
Publisher: PEARSON
Question
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Chapter 13, Problem 17Q
To determine

How hedge funds differ from mutual funds

Context Introduction:

Mutual funds are professionally managed investment funds which are the investments of many investors who put their money in the market for some extra income. Investors can be anyone; be it local public or large businesses. The money earned from this investment is further put into securities such as bonds, stocks for higher returns by the shareholders on which the return depends. Hedge funds, on the other hand, are low regulated investment tool which uses various types of investment techniques and may invest in a wide variety of assets to generate high returns which in turn is riskier.

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