Home / Aptitude Tests / General Knowledge Trivia / What is a "hedge fun...
What is a "hedge fund"?...

What is a "hedge fund"?

A.

A fund that focuses on low-risk investments

B.

A fund that uses high-risk strategies to maximize returns

C.

A savings account with fixed interest

D.

A government fund for public projects

E.

A charity fund

Correct answer is B

A hedge fund uses high-risk strategies like leverage and derivatives to maximize returns for wealthy investors.