SIE Understanding Products and Their Risks Practice Question 90

Correct Answer: A

Explanation:

A: Choice A is correct because the Investment Company Act of 1940 requires mutual funds to be registered investment advisers. Choice B is incorrect because, though some hedge funds may be investment advisers, not all are. Choice C is incorrect because TIC transactions do not involve establishing an entity, but rather involve investors signing a mortgage. Choice D is incorrect because REITs are not registered investment advisers and are not covered by the Investment Company Act of 1940.