A Hedge Fund Attempting to Profit from a Change in the Spread

question 41

Multiple Choice

A hedge fund attempting to profit from a change in the spread between mortgages and Treasuries is using a ______ strategy.

• A) market neutral
• B) directional
• C) relative value
• D) divergence
• E) convergence

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Definitions:

Outliers

Data points that are significantly different from the majority of points in a data set, which could indicate a measurement error or a novelty within the data.

Interpersonal Skills

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Career Support

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Sponsorship typically refers to the support, financial or otherwise, provided by a person or organization to an event, activity, person, or organization, often for mutual benefit.