Solved

The Difference Between Market-Neutral and Long-Short Hedges Is That Market-Neutral

Question 1

Multiple Choice

The difference between market-neutral and long-short hedges is that market-neutral hedge funds ________.


A) establish long and short positions on both sides of the market to eliminate risk and to benefit from security asset mispricing whereas long-short hedges establish positions only on one side of the market
B) allocate money to several other funds while long-short funds do not
C) invest in relatively stable proportions of stocks and bonds while the proportions may vary dramatically for long-short funds
D) invest only in equities and bonds while long-short funds use only derivatives

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents