equity quiz c equity, return, stocks, comment

Palantir

which comment about short extension strategy is false
A it can not be established in the absence of a liquid swap or futures market
B it help managers first in place where the long-only constraint is most limiting ,small cap
stocks
C it gain market return and anpha from same source

mp3bu

A.

Short extension strategy relies on shorting individual stock names and investing more than 100% long. No need to swap or futures market. Swap or futures market is for equitized market neutral.

zwjy

Goodman, your questions are hard to read through. Should be A though.

bkballa

bpdulog Wrote:
-------------------------------------------------------
> I have no idea what B is trying to say. Is this
> from the book?

Long-short most effective in places that have higher sources of alpha generation. Asymmetric or symmetric.



Edited 1 time(s). Last edit at Wednesday, May 25, 2011 at 03:33PM by Paraguay.