Part 1Hedge funds are similar to the Mutual funds. They allow small investors to diversify their portfolios and thus provides a hedge against risk.​ However, unlike a mutual​ fund, investors do not have to commit their money for long periods of time.Evaluate the statement above.Part 2 A. True. Hedge funds have a minimum investment requirement between​ $1000 and​ $5000, with the typical minimum investment being​ $1500. Furthermore, there is typically no penalty for withdrawing money from the fund. B. False. Although hedge funds typically have minimum investment requirement between​ $500 and​ $1000, they require that investors commit their money for long periods of​ time, often several years. C. True. Hedge funds have a minimum investment requirement between​ $500 and​ $1000, with the typical minimum investment being​ $500. Furthermore, shares in of a hedge fund can sold at anytime for any reason. D. False. Hedge funds have a minimum investment requirement between​ $100,000 and​ $20 million, with the typical minimum investment being​ $1 million.​ Furthermore, they usually require that investors commit their money for long periods of​ time, often several years.