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A Primary Difference in Private Equity Funds and Hedge Funds

Question 26

Multiple Choice

A primary difference in private equity funds and hedge funds is that:


A) private equity funds invest for the short-term while hedge funds invest and intend to stay invested in a firm for the long-term.
B) hedge funds only loan money to firms while private equity finds seek to take an equity stake in firms.
C) hedge funds are controlled by non-traditional financial entities like insurance companies and private equity finds generate most of their funds internally.
D) private equity funds often seek control of the firms they invest in while hedge funds generally are not interested in control.

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