Which of the following statements concerning hedge funds are TRUE?
I.Purchasers of hedge funds are generally required to be accredited investors.
II. Short sales by the fund are not allowed.
III. Ordinary investors may invest in hedge funds indirectly through funds of hedge funds.
IV. Hedge funds invest actively only when securities prices are moving up.
A) I and IV.
B) II and III.
C) II and IV.
D) I and III.
Answer: D) I and III.