Alternate investments various questions cha, its, alternate, completed, recently

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On alternate invesments, i recently completed and have got half dozen questions:
1. HEDGE FUND
CFAI EOC, Q No. 14 Spanish Italian merger
In this case, how does HF hedged its buy position in Italian @ 8 by short selling Spanish firm shares @ 12.5?
In future, If merger does not happen, then if italian goes back to 6, it will be a loss for HF. Then , Spanish may likely be = or more than 12.5.. Then, i mean, how does this hedge goes man??
2. HEDGE FUND
Schweser R No 73, Concept Checker #9.( One charaterstic of HF as an asset base is common ….). i think both A and B are correct.
3. COMMODITIES
Schweser R No 73 , Concept Checker #18. I think both A & C are correct. Isnt commodities linked securities more liquid than buying and selling physical commodities.
4. HEDGE FUNDS MARKET NEUTRAL HF
As per Schweser, mkt neutral HF are funds that have long and short postions offsetting each other, so that the total mkt exposure is zero.
Can ne1 give example how these HF will make income with this , since any gain with one stock , will be offset by loss in another and vise versa. Does income from these HF consists only of dividends?
Isn’t it?
5. REAL ESTATE
EOC Q #5, In this question for calcultating NPV, only equity portion is deducted .
CFAI answer is (3 Mn *15%)  579843
My answer = ( 3 mn  579,843)
Shouldn’t zero year Cash flow = debt + equity amount of 3 Mn?? What am i missing?
6.VENTURE CAPITAL  CONDITIONAL PROBABILTY
If failure probability for a project is given as 0.28,0.25,0.22.0.18 , 0.18 &0.10 respectively for 1 to 6 years.
Now , therefore, probability that project will be successful at end of 6 yrs. will be
(10.28)*(10.25)*   
= 0.25849 or 25.84 %
and so, overall probability of failure of project= 10.25849 = 0.74511 0r 74.51 %
y question is that Is it possible to get figure of 0.74511 from the failure probabilities given at the start of this query?
( 0.28*0.25*   = 0.00005 which doesn’t make sense).
Many thanks