Zero Inflation Means That

question 35

Multiple Choice

Zero inflation means that

• A) the price level remains roughly constant from one year to the next.
• B) there is 0% to 3% inflation per year.
• C) the inflation rate is constant from one year to the next.
• D) there 1% inflation per year.
• E) low inflation.

Analyze the risk profiles of hedge funds and the challenges in performance evaluation.

Understand the concepts of alpha and beta in the context of hedge fund performance and risk management.

Comprehend the methods hedge funds use for hedging and leveraging in investment strategies.

Recognize the importance and impact of biases such as survivorship and backfill biases on hedge fund performance reporting.

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Definitions:

Privity of Contract

A legal doctrine that stipulates that only parties in a contract have the right to sue or be sued on the contract terms.

Right to Privacy

The right of individuals to keep their personal matters and relationships confidential and free from public view or intrusion.

Bank's Sale

A sale conducted by a bank, usually involving assets owned by the bank or foreclosed properties.

Unconditional Assignment

A legal transfer of all rights and interests in a policy or contract to another party without any conditions.