Multiple Choice
Sadka (2010) shows that exposure to unexpected declines in ________ is an important determinant of average hedge fund returns, and that the spreads in average returns across funds with the highest and lowest ________ may be as much as 6% annually.
A) market risk; systematic risk
B) market liquidity; liquidity risk
C) unsystematic risk; unique risk
D) default risk; default risk
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Market neutral bets can result in _
Q3: _ bias arises because hedge funds only
Q4: Performance evaluation of hedge funds is complicated
Q5: _ must periodically provide the public with
Q6: Hedge fund incentive fees are essentially<br>A) put
Q8: _ uses quantitative techniques, and often automated
Q9: Statistical arbitrage is a version of a
Q10: _ refers to sorting through huge amounts
Q11: Like mutual funds, hedge funds<br>A) allow private
Q12: Hedge funds often have _ provisions as