Why are hedge funds considered a high-risk form of investment?
O A. They require a huge investment of capital in order to join.
O B. They rely on risky practices such as investing borrowed money
O C. They cannot be withdrawn for at least 30 years after investme
O D. They are owned and controlled by the federal government.

Respuesta :

Answer:B

Explanation:

Took the test

The reason why hedge funds are considered to be risky investments is because B. They rely on risky practices such as investing borrowed money.

Why are hedge funds considered risky?

Hedge funds often engage in risky investment strategies such as investing using funds that are borrowed.

This is quite risky because when losses are made, the debts would still have to be paid back even though there aren't profits to pay back from.

Find out more on hedge funds at https://brainly.com/question/25536383.

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