FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 26: Hedge Funds

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

______ must periodically provide the public with information on portfolio composition.

A) Hedge funds
B) Mutual funds
C) ADRs
D) Hedge funds and ADRs
E) Hedge funds and mutual funds

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

______ bias arises when the returns of unsuccessful funds are left out of the sample.

A) Survivorship
B) Backfill
C) Omission
D) Incubation
E) None of the options

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Hedge funds exhibit a pattern known as a

A bet on particular mispricing across two or more securities, with extraneous sources of risk such as general market exposure hedged away, is a

Pairs trading is associated with

Assume that you manage a $1.3 million portfolio that pays no dividends and has a beta of 1.45 and an alpha of 1.5% per month.Also, assume that the risk-free rate is 0.025% (per month) and the S&P 500 is at 1,220.If you expect the market to fall within the next 30 days you can hedge your portfolio by ______ S&P 500 futures contracts (the futures contract has a multiplier of $250) .

Hedge funds are ______ transparent than mutual funds because of ______ strict SEC regulation on hedge funds.

Market neutral bets can result in ______ volatility because hedge funds use ______.

Hedge funds ______ engage in market timing ______ take extensive derivative positions.

Assume that you manage a $3 million portfolio that pays no dividends and has a beta of 1.45 and an alpha of 1.5% per month.Also, assume that the risk-free rate is 0.025% (per month) and the S&P 500 is at 1,220.If you expect the market to fall within the next 30 days you can hedge your portfolio by ______ S&P 500 futures contracts (the futures contract has a multiplier of $250) .

Like mutual funds, hedge funds

______ uses quantitative techniques and often automated trading systems to seek out many temporary misalignments among securities.

An example of a ______ strategy is the mispricing of a futures contract that must be corrected by contract expiration.

Assume that you manage a $2 million portfolio that pays no dividends and has a beta of 1.25 and an alpha of 2% per month.Also, assume that the risk-free rate is 0.05% (per month) and the S&P 500 is at 1,300.If you expect the market to fall within the next 30 days you can hedge your portfolio by ______ S&P 500 futures contracts (the futures contract has a multiplier of $250) .

The typical hedge fund fee structure is

A hedge fund pursuing a ______ strategy is trying to exploit relative mispricing within a market, but is hedged to avoid taking a stance on the direction of the broad market.

______ are subject to the Securities Act of 1933 and the Investment Company Act of 1940 to protect unsophisticated investors.

Hedge funds often have ______ provisions as long as ______, which preclude redemption.

A hedge fund pursuing a ______ strategy is attempting to exploit temporary misalignments in relative pricing.

Unlike mutual funds, hedge funds