SIE Understanding Products and Their Risks Question 86: Answer and Explanation

Question: 86

Which of the following is typically NOT included in an "Offering Document"?

• A. Plan for operations
• B. Minimum guaranteed return on investment over a three-year period
• C. Fund manager's approach to investing
• D. Fees

Correct Answer: B

Explanation:

B: Choice B is correct because hedge funds generally provide no guaranteed return over any period. Choices A, C, and D are incorrect because these are topics that are included in an offshore hedge fund's "Offering Document" or "Private Placement Memorandum (PPM)."