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Finra Exam Series-6 Topic 1 Question 47 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 47
Topic #: 1
[All Series-6 Questions]

Which of the following statements about hedge funds is true?

Show Suggested Answer Hide Answer
Suggested Answer: B

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.


by Hoa at Aug 24, 2022, 11:51 PM

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Mitzie
25 days ago
These hedge fund questions always make me laugh. It's like they're trying to trick you with the answer choices!
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Pansy
A) They are fairly low risk since the portfolio managers use investment strategies designed to ''hedge their bets.''
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Johnetta
1 months ago
Ha, low management fees? Hedge funds are notorious for their high fees! Option D is clearly incorrect.
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Minna
21 days ago
A) They are fairly low risk since the portfolio managers use investment strategies designed to ''hedge their bets.''
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Ira
28 days ago
A) They are fairly low risk since the portfolio managers use investment strategies designed to 'hedge their bets.'
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Sena
2 months ago
Option C is definitely not true. Hedge funds are known for their lack of liquidity compared to other investments.
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Karon
21 days ago
B) They are not regulated by the Investment Company Act of 1940.
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Karon
1 months ago
A) They are fairly low risk since the portfolio managers use investment strategies designed to ''hedge their bets.''
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Miesha
2 months ago
I'm not sure about the 'low risk' part in option A. Hedge funds can actually be quite risky, depending on the investment strategies they use.
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Becky
3 days ago
User 4: That's true, they have more flexibility in their investments.
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Miesha
9 days ago
User 3: Option B is true, hedge funds are not regulated like other investment companies.
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Laura
15 days ago
User 2: I agree, it's important to research the specific strategies used.
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Barney
29 days ago
User 1: I think option A is misleading, hedge funds can be risky.
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Jin
2 months ago
But hedge funds are known for their high management fees, so I still think A is correct.
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Chauncey
2 months ago
Option B seems to be the correct answer. Hedge funds are not regulated by the Investment Company Act of 1940, unlike mutual funds.
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Zita
2 months ago
I disagree, I believe the answer is B.
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Jin
2 months ago
I think the answer is A.
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