Asked by

Taylor Moreno
on Dec 04, 2024

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Which of the following investment styles could be the best description of the Long Term Capital Management market-neutral strategies?

A) convergence arbitrage
B) statistical arbitrage
C) pairs trading
D) convertible arbitrage

Market-neutral Strategies

Investment strategies that seek to achieve returns independent of the direction of the overall market by simultaneously buying and selling related securities.

Convergence Arbitrage

A strategy involving the purchase of a security in one market and simultaneous sale in another, exploiting differences in prices as they converge.

Statistical Arbitrage

A quantitative approach to equity trading that seeks to exploit pricing inefficiencies between related financial instruments.

  • Discern between various categories of hedge funds and the tactics they use for investing.
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MS
Michelle ShieldsDec 07, 2024
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