请问soft hard catalyst

问题如下：

Investors with lower risk tolerance should prefer event-driven hedge funds that:

选项：

A.employ soft-catalyst investing.

B.undertake a hard-catalyst approach.

C.make investments in anticipation of the announcement of a corporate event.

解释：

A is incorrect because the soft-catalyst approach is more volatile and riskier than the hard-catalyst approach.

B is correct because event-driven hedge funds take one of two approaches. The hard-catalyst approach is generally less volatile and less risky than soft-catalyst investing. Either investments can be made proactively in anticipation of an event that has yet to occur (i.e., a soft-catalyst event-driven approach), or investments can be made in reaction to an already announced corporate event in which security prices related to the event have yet to fully converge (i.e., a hard-catalyst event-driven approach).

C is incorrect because an investment made in anticipation of the announcement of a corporate event follows the soft-catalyst approach, which is riskier than the hard-catalyst approach. The hard-catalyst approach is generally less volatile and less risky than soft-catalyst investing.