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Basic Question 13 of 15
The key feature of market-neutral hedge funds is ______
B. the take bet on the direction of a market.
C. that they buy stocks that they think will move up and sell stocks that they think will move down.
A. the low correlation between their returns and traditional assets'.
B. the take bet on the direction of a market.
C. that they buy stocks that they think will move up and sell stocks that they think will move down.
User Contributed Comments 3
| User | Comment |
|---|---|
| nachaparia | anyone care to explain why its A ??? |
| rcoyne | Market-Neutral = Hedged against overall market moves B is eliminated because a bet on market direction is directly exposed to market moves. C should also be eliminated because buying winners/selling losers does not hedge overall market conditions (recessions hurt winners as well as losers) |
| joeclark | Check Alternative Investment's reading. That is one of the feature of Hedge Funds. |
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Learning Outcome Statements
describe mutual funds and compare them with other pooled investment products
CFA® 2024 Level I Curriculum, Volume 6, Module 3.