A Hedge Fund Pursuing a ______ Strategy Is Trying to Exploit

question 85

Multiple Choice

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.

• A) directional
• B) non-directional
• C) market neutral
• D) arbitrage or speculation
• E) none of these

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Definitions:

Direct Ownership

A situation in which an individual or entity holds direct title to assets, such as property or stocks, without any intermediaries.

Political Risk

The potential for losses or other adverse effects on business operations due to political instability or changes in government policies.

Foreign Market

A market outside of a company's home country where it engages in selling its products or services.

Direct Ownership

A form of business ownership where individuals or entities have complete control over their investments or assets without intermediaries.