$($Select all the choices that apply.$)$

A$.$ Insurance companies spread out risk by pooling premiums together from policy holders and pay the claims of those who have an accident, fire, medical need or die. This process spreads the financial risk of these events out across a large pool of policyholders and the investors in the insurance company.

B$.$ Mutual funds and pension funds take your savings and spread them out among the stocks and bonds of many different companies, limiting your exposure to any one compant

C$.$ Investment companies will deny any attempt by an investor to concentrate their investment in one single company as this would violate their role in spreading out risk.

D$.$ Financial institutions not only assist with the risk$-$bearing of savers and investors, but must also be concerned about their own risk, spreading their loans out among a variety of clientele

What are some of the similaritiegs and differences among mutual funds, pension funds, and hedge funds?

$($Select all the choices that apply.$)$

A$.$ Mutual funds, pension funds and hedge funds are all financial institutions involved with helping savers and investors reach their financial goals.

B$.$ Unlike mutual funds and pension funds which serve investors of all means, hedge funds are primarily designed for wealthy investors and endowments.

C$.$ Pension funds, which are similar to mutual funds in that they buy stocks, bonds and other financial instruments on behalf of its investors, is primarily concerned with providing retirement income. Mutual funds allow investments to be accumulated and withdrawn for a variety of financial goals.

D$.$ Hedge funds are highly regulated funds which are restricted from investing in many risky categories of investments.