E. Indicate Whether the Following Are True or False. 1 Event driven funds proft

Question

E. Indicate Whether the Following Are True or False. 1 Event driven funds proft from unique events, such as mergers and acquisit 2 A directional hedge fund would make a specific bet on such things as in zons te interest ra or foreign currency movements 3. In general. we can say that hedge funds tend to have high correlations with traditional asset classes. Oerall hedge funds are heavily regulated thas making them suitable primarily for sophisticated investors. 5. Like mutual funds, hedge funds cannot make use of short selling long/short equity fund is generlly considered the most popular sype of hedge fund in Canada. 6. The long/short equity fund is In a fixed-income arbitrage strategy, the fund manager makes use of a high degree of financial leverage to help achieve the desired outcome. 7. leerage tohelp 8. Investing in an emerging market hedge fund is cosidered a directional bet F. Sample Multiple Choice Questions 1. Which of the following legal documents would an institutional investor acquire to find out more about the risks and objectives of a hedge fund ? a) Preliminary prospectus. b) Final prospectus. e Annual information form d) Offering memorandum.

Explanation / Answer

As per rules I am answering the first 4 sub-parts of this question

1. True

(An event driven fund aims at exploiting pricing differences before and after a corporate event)

2. True

(Macro hedge funds are directional funds which bet on interest rate and currency fluctuations)

3. False

(Hedge funds are weakly correlated with traditional asset classes)

4. True

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.