Question

Roddy Rich is a very astute entrepreneur and wants to invest in an asset that will require high maintenance with disregard for spreading risks in the asset or the amount spent investing in asset has a potential for greater returns. He is best served investing in the following:_______

a. hedge funds
b. small cap stocks
c. mutual funds
d. growth stocks
e. Index funds
f. ETFs

Answer 1

Answer:

He is best served investing in the following:_______

a. hedge funds

Explanation:

Hedge funds require high maintenance cost.  Hedge funds are alternative investment vehicles used by risk-tolerant investors.  The hedge funds investment company pools funds from different investors into a single fund and then employs different strategies, including complex trading, sophisticated derivatives, portfolio-construction, and risk management techniques, to earn active returns and improve the pooled funds performance.