Question

A hedge fund is a fund

Options

• used for absorbing inflation

• used for cushioning health risks

• applied to minimize the risk of financial market  transactions

• applied for absorbing the risk in commodity trading

Answer 1

A hedge fund is a fund applied to minimize the risk of financial market  transactions

Explanation:

Hedge funds engage in a diverse range of markets and strategies and employ a wide variety of financial instruments and risk management techniques.