The difference between market neutral and long/short hedges is that market neutral hedge funds ________.
A) establish long and short position on both sides of the market to eliminate risk and to benefit from security asset mispricing, whereas long/short hedge 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 shares 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:
Verified
Q2: Which of the following typically employ significant
Q3: Assuming positive basis and negligible borrowing cost,which
Q5: Hedge funds can invest in various investment
Q7: Advantages of hedge funds include all but
Q9: Hedge funds managers are compensated by _.
A)
Q10: An example of a neutral pure play
Q10: A restriction where investors cannot withdraw their
Q13: You believe that the spread between the
Q13: The incentive fee of hedge funds is
Q14: Convertible arbitrage hedge funds _.
A)attempt to profit
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