Hedge Fund Strategies Can Be Classified as

question 1

Multiple Choice

Hedge fund strategies can be classified as

• A) directional or nondirectional.
• B) stock or bond.
• C) arbitrage or speculation.
• D) stock or bond and arbitrage or speculation.
• E) directional or nondirectional and stock or bond.

---

Definitions:

Shear

A force that causes parts of a material to slide past one another in opposite directions, relevant in understanding earthquake mechanisms.

Compression

The process of reducing the volume of a material by applying pressure, or in geology, the stress state in which rock is pressed together, increasing its density.

Tension

A force that stretches material or causes it to be pulled apart.

Columnar Joints

Vertically oriented, hexagonal columns of rock that form as a result of the cooling and contraction of volcanic or igneous rocks.