Briefly Explain a Relational Model

question 67

Essay

Briefly explain a relational model.

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Definitions:

Hedge Funds

Investment funds that employ various strategies to earn active return, or alpha, for their investors, often requiring a large initial minimum investment and offering less regulation.

Market-Neutral

Market-neutral is an investment strategy or portfolio designed to neutralize certain market risks by taking offsetting positions, aiming to achieve returns largely independent of the overall market movement.

Risky

Involving exposure to danger or financial loss probabilities.

Financial Intermediary

An intermediary that buys securities with funds that it obtains by issuing its own securities. An example is a common stock mutual fundthat buys common stocks with funds obtained by issuingshares in the mutual fund.