Quiz Ch 20 – Hedge Fund Structure
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
How are hedge funds commonly structured?
How are hedge funds commonly structured?
How is hedging a $15 million hedge fund portfolio with beta = 1.2 and alpha = 2% per quarter using 3-month S&P 500 future contracts ($250 multiplier) characterized?
Which strategy represents a neutral pure play?
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?
What is the term used to describe a condition that prevents investors from accessing their funds for periods extending from several months to years?
Which investment type/s usually utilizes substantial leverage?
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?