Strategy Evaluation Is Necessary Because

question 103

Multiple Choice

Strategy evaluation is necessary because

• A) internal and external factors are constantly changing.
• B) the SEC requires strategy evaluation.
• C) success today is a guarantee of success tomorrow.
• D) the IRS requires strategy evaluation.
• E) firms have limited resources.

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Definitions:

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.

Multistrategy Funds

Investment funds that employ a variety of strategies across different asset classes to achieve diversification and manage risk.

Asset Allocation Funds

Mutual funds that invest in a variety of asset classes, such as stocks, bonds, and real estate, to diversify investment risk.