wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Byju's Answer
Standard IX
Mathematics
Types of Investments and Understanding Profitability
Q. Consider t...
Question

Q. Consider the following statements regarding the Hedge Funds.

Which of the statements given above is/are incorrect?

A

1 only
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B

1 and 2 only
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C

2 and 3 only
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

1, 2 and 3
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B
1 and 2 only
Explanation:

Statement 1 is incorrect: Theoretically hedge funds are to minimize the risk and optimize the return but practically these are the most risky funds as these are not regulated by regulators of any country.

Statement 2 is incorrect: Hedge funds are only available to a specific group of sophisticated investors with high net worth.

Statement 3 is correct: These Hedge Funds buy Indian shares which are called Participatory Notes or PNotes. It has been a matter of great concern to SEBI because more than 51% of FIIs investment in India has been in the form of P-notes.

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
Q.

14. Consider the following statements,
1] Foreign direct investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.

2] A foreign institutional investor (FII) is an investor or investment fund registered in a country outside of the one in which it is investing. Institutional investors most notably include hedge funds, insurance companies, pension funds and mutual funds.

Which of the above statements is/are correct?


Q. are financial instruments required by Investors or Hedge Funds to invest in Indian securities without having to register with the SEBI.
Q.

Q. With reference to the ‘Hedge Funds’, consider the following statements:

Which of the statements given above is/are incorrect?

Q. 'हेज कोष' के संदर्भ में, निम्नलिखित कथनों पर विचार कीजिए:

  1. ये विभिन्न जोखिम प्रोफाइल वाले प्रतिभूतियों में निवेश करते हैं।
  2. निवेशकों द्वारा 1 करोड़ से कम के निवेश के लिए इसे प्राथमिकता दी जाती हैं।
  3. इन्हें भारत में वैकल्पिक निवेश कोष के रूप में वर्गीकृत किया जाता है।

उपर्युक्त कथनों में से कौन सा/से गलत है/हैं?



  1. 1 and 3 only
    केवल 1 और 3

  2. 2 only
    केवल 2

  3. 3 only
    केवल 3

  4. 1 and 2 only
    केवल 1 और 2
Q.

Q17. Consider the following statements about Commodity market:

1. It is the market where a wide range of products are traded

2. This would help investors hedge their commodity risk.

Which of the following statements are correct?


Q. Q. With reference to participatory notes (P-Notes), consider the following: Which of the statements given above is/are correct?

  1. 1 only

  2. 2 only

  3. Both 1 and 2

  4. Neither 1 nor 2
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Types of Investments and Understanding Profitability
MATHEMATICS
Watch in App
explore_more_icon
Explore more
Types of Investments and Understanding Profitability
Standard IX Mathematics
Join BYJU'S Learning Program
book_image
AI Tutor
book_image
Textbooks
book_image
Question Papers
book_image
Install app
CrossIcon