Quiz Ch 20 – Impact of Lock-Up Restrictions on Portfolios
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What types of portfolios are typically affected by lock-up restrictions in Aragon’s (2007) research?
What types of portfolios are typically affected by lock-up restrictions in Aragon’s (2007) research?
What statement about long-short hedge funds would become invalid if government regulations prohibited short selling?
What financial concept does the compensation arrangement for hedge fund managers resemble, where they receive bonuses for exceeding benchmarks but face no penalties for underperformance?
In what scenario are hedge fund managers unable to charge incentive fees due to the high-water mark provision?
How is the catastrophic event that led to the collapse of the Long Term Capital Management hedge fund in 1998 described in statistical terms?
Which investment strategy is most aligned with the market-neutral strategies employed by Long Term Capital Management?
What are the strategies employed by convertible arbitrage hedge funds?
How does the survivorship bias in hedge funds compare to that in mutual funds according to Malkiel and Saha (2005)?
What is the usual range for the initial investment in a hedge fund?
What does it mean regarding short selling and long positions for every $100 in net assets in hedge fund terminology, when a short-selling fund is described as a 120/20 fund in its prospectus?