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Basic Question 6 of 9
The low correlation between their returns and the traditional assets' is the key feature of
B. Long/short funds.
C. Arbitrage-based funds.
A. Market neutral funds.
B. Long/short funds.
C. Arbitrage-based funds.
User Contributed Comments 2
| User | Comment |
|---|---|
| ankurwa10 | when the answer says seek zero beta exposure, how they make money then? pardon my ignorance here. |
| shederman | They make money from alpha, which is normally more than bond returns. So, stock market average returns without the risk/gain of individual shares. |
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Craig Baugh
Learning Outcome Statements
explain investment features of hedge funds and contrast them with other asset classes
describe investment forms and vehicles used in hedge fund investments
CFA® 2024 Level I Curriculum, Volume 5, Module 6.