Which type of hedge fund examines relationships between global markets to find relationships that do not conform with economic theory?

A) event-driven
B) global macro markets
C) emerging markets
D) hedge fund-of-funds

Question

Which type of hedge fund examines relationships between global markets to find relationships that do not conform with economic theory?

A) event-driven
B) global macro markets
C) emerging markets
D) hedge fund-of-funds

Quizplus · Accepted Answer

The strategies of these funds are based on examining relationships between global markets and identifying those relationships that do not conform with economic theory and/or historical observations.While global macro hedge funds are sometimes thought of as a form of arbitrage,the profit is not truly riskless,as the underlying relation is often not precise.Indeed,such strategies can often entail a high degree of risk,as the fund manager is essentially making a directional bet on market movements.

Which Type of Hedge Fund Examines Relationships Between Global Markets