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Basic Question 3 of 4
Which type of hedge funds typically has a low standard deviation?
B. Arbitrage-based funds.
C. Global macro funds.
A. Market neutral funds.
B. Arbitrage-based funds.
C. Global macro funds.
User Contributed Comments 2
| User | Comment |
|---|---|
| ankurwa10 | Did not get this. should this not be true for market neutral funds. Intuitively, it should end up giving you what the market makes? |
| birdperson | market-neutral shoot for a beta of 0, so if they make what the market makes (which has beta of 1) it would be a solid investment (considering its role in a portfolio) |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
analyze sources of risk, return, and diversification among hedge fund investments
CFA® 2025 Level I Curriculum, Volume 5, Module 6.