CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

Select the correct statement(s).

I. Market-neutral fund is a hedge fund classification.
II. One drawback of fund of funds investing is higher fees.
A. I only
B. II only
C. I and II
Explanation: There are two layers of fees in fund of funds investing.

User Contributed Comments 3

User Comment
tijelo Why C?
ChaseF Market-neutral funds are a classification listed in the text, so (I) is correct.

An investor in a fund of funds is charged a fee by the fund of fund manager and each of the sub-funds also charges a fee, so (II) is also correct.
nmech1984 actually, "market-neutral fund" is sub-classification of equity hedge funds.
You need to log in first to add your comment.