Which of the Following Statements Is True Regarding Hedge Funds

Multiple Choice

Which of the following statements is true regarding hedge funds and private equity funds?

A) Both operate primarily by buying stock (equity) to gain controlling interest in companies.
B) Both have a limited number of investors.
C) Hedge funds are highly regulated, while there are few controls over the activities of private equity funds.
D) The risks involved in investing in private equity funds are significantly less than the risks involved in investing in hedge funds.