Question

Andrew works for QXQ as an investor; he only takes clients that have at least $500,000 to invest. He has been touting this new hedge fund that he himself has invested in. It is promising 20% returns every year. He just signed up the Jones. If this scenario is too good to be true, what will likely happen to the Jones' money?
a. It will be invested.
b. It will be used to pay previous investors.
c. It will be used for securitization.
d. It has just provided QXQ a big kickback.

Answer

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