A Hedge Fund Is Similar to a Mutual Fund in That

Multiple Choice

A hedge fund is similar to a mutual fund in that it invests funds on behalf of clients.Select the notable difference between hedge funds and mutual funds from the following choices?

A) ​Hedge funds have to register under U.S.federal securities law.
B) ​Hedge funds do not publicly offer their securities.
C) ​Mutual funds and not hedge funds have all sophisticated investors and thus are subject to more regulations.
D) ​Unlike mutual funds, rarely do hedge funds use derivatives for speculation.