Which of the Following Would Be an Example of Basic

question 31

Multiple Choice

Which of the following would be an example of basic research?

• A) Studies of the atmosphere on Neptune.
• B) Research into gene therapy to treat Alzheimer's disease.
• C) Studies of circuit miniaturization for applications in computers.
• D) A pharmaceutical company's research into a chemical compound that could reduce the growth rate of cancer cells.

---

Definitions:

Hedge Fund Returns

The earnings generated from investments in a hedge fund, which is a pooled investment fund that employs different strategies to earn active returns for its investors.

Pairs Trading

A form of statistical arbitrage in which stocks are paired up based on underlying similarities and long/short positions are established to exploit any relative mispricing between each pair.

Statistical Arbitrage

A quantitative strategy that seeks to take advantage of price inefficiencies between related financial instruments by employing complex mathematical models.

Triangular Arbitrage

Triangular arbitrage is a risk-free trading strategy that takes advantage of a discrepancy between three foreign currencies in the foreign exchange market.