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LOS p: Identify and explain the style classification of a hedge fund, given a description of its investment strategy.
Q1. A hedge fund that focuses on earning returns from mergers, spin-offs, and takeovers would be most accurately placed in which style category?
A) Equity market neutral.
B) Merger arbitrage.
C) Hedged equity.
Q2. A hedge fund that takes positions in convertible bonds or convertible preferred stock and then takes other positions in the underlying stock would be most accurately placed in the style category:
A) equity market neutral.
B) convertible arbitrage.
C) distressed securities.
Q3. William Jones, CFA, has a client who wants to invest in a hedge fund that has the strategy of investing in equities and has among its goals the elimination of systematic risk. Jones has found two funds that he thinks are well run: the Marius Fund that uses an equity market neutral strategy and the Hera Fund that uses a hedged equity strategy. Given the client’s stated preferences, Jones should recommend:
A) either fund.
B) the Marius Fund only.
C) the Hera Fund only. | 
发表于 2009-3-11 10:07
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