Question

A 22-year old, unmarried, new customer contacts you, explaining that he just inherited $10,000,000 and wishes to invest the money aggressively to produce superior returns. He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns. For this client, the best recommendation would be a: A hedge fund B fund of hedge funds C growth fund D value fund

Answer 1

B fund of hedge funds

Step-by-step explanation:

The motive of the investor is to maximizing the return and minimizing the risk

The hedge fund refers to that fund in which the portfolio of investment is protected from the uncertainty of the market and at the same time it also generates the positive return when the market is at recession or in boom period

While on the other hand, the fund of the hedge fund is a portfolio or mix of hedge funds shares in which it is applied to any type of investment fund

According to the given situation, the new customers invest his money to generate high returns moreover he is also risk tolerant and finds the number of ways for enhancing the returns so for this situation, the best option fit is option B.