Which Type of Strategy Is Best Utilized for Exiting a Market

question 14

Multiple Choice

Which type of strategy is best utilized for exiting a market by selling or closing down the business or eliminating the product?

• A)a harvest strategy
• B)a monetize strategy
• C)a horizontal integration strategy
• D)a vertical integration strategy
• E)a divest strategy

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Definitions:

Hedge Fund Returns

The earnings generated from investments in a hedge fund, which is a pooled investment fund that employs different strategies to earn active returns for its investors.

Pairs Trading

A form of statistical arbitrage in which stocks are paired up based on underlying similarities and long/short positions are established to exploit any relative mispricing between each pair.

Statistical Arbitrage

A quantitative strategy that seeks to take advantage of price inefficiencies between related financial instruments by employing complex mathematical models.

Triangular Arbitrage

Triangular arbitrage is a risk-free trading strategy that takes advantage of a discrepancy between three foreign currencies in the foreign exchange market.