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LOS k: Discuss the leverage and unique risks of hedge funds.
Q1. In periods of high volatility, hedge funds may encounter broker-dealers that adopt policies of extremely conservative marking-to-market of fund assets. This is called:
A) pricing risk.
B) counterparty risk.
C) settlement risk.
Q2. Which of the following strategies is least likely to be used by a hedge fund to increase leverage?
A) Borrowing external funds.
B) Margin borrowing.
C) Pursuing arbitrage opportunities.
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发表于 2009-2-28 17:50
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