Which of the following statements is true regarding hedge funds?
I. Hedge funds are similar in structure to mutual funds, but they are dissimilar in that they are unregulated and thus have a wider array of investment options
II. Hedge funds are characteristically very safe but speculative, using purchases on margin, short sales, and other higher-risk investment strategies to aggressively make a profit
III. Hedge funds have very limited liquidity, often keeping investors’ money for at least one year
IV. Hedge funds have unlimited liquidity, often keeping investors’ money for at least three years