please please help I will rate. All questions pls. 11. Which of the following st
ID: 2803644 • Letter: P
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please please help I will rate. All questions pls.
11. Which of the following statements is true regarding hedge funds? a) they are less regulated than mutual funds b) they are only suitable for investors with a high risk tolerance. e they are marketed as being more liquid and generally less volatile than mutual funds d) a) and c) 13. When there is threshold minimum return that the manager must achieve in order to collect incentive fees, it is known as a: a) hurdle rate b) high-water mark c) performance fee mark d) incentive fee mark 14. Equity market-neutral funds are part of which hedge fund strategy? a) event-driven b) relative value c) directional d) all of the above 15. A note issued by a Canadian bank or crown corporation that provides access to hedge funds while guaranteeing principal at maturity, is known as a: a) PPN b) PAN c) HFN d) PNP 16. Hedge funds that seek to profit when markets decline are known as a) emerging markets b) dedicated short-bias funds. c) managed futures d) long-short equity funds 17. The benefits of investing in hedge funds include: a) low correlation to traditional assets, risk minimization and light regulatory oversight b) absolute returns, risk minimization and potentially lower volatility with higher returns e) low correlation to traditional assets, risk minimization, and the ability to take advantage or short-selling opportunities d) fees based on performance, high degree of liquidity with specific liquidity dates and low correlation to traditional assetsExplanation / Answer
Question 11). Answer :- Option d). a) and c).
Question 13). Answer :- Option a). Hurdle rate.
Question 14). Answer :- Option d). All of the above.
Question 15). Answer :- Option a). PPN (Principal Protected Notes).
Question 16). Answer :- Option d). Long-short equity funds.
Question 17). Answer :- Option c). Low correlation to traditional assets, risk minimization, and the ability to take advantage or short-selling opportunities.
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