Asked by

Brock schafer
on Dec 08, 2024

verifed

Verified

A hedge fund pursuing a ______ strategy is attempting to exploit temporary misalignments in relative pricing.

A) directional
B) nondirectional
C) stock or bond
D) arbitrage or speculation
E) None of the options are correct.

Temporary Misalignments

Short-term discrepancies between the prices or values of related financial instruments or market sectors that are expected to correct over time.

Arbitrage Strategy

An investment strategy aiming to profit from price differences of the same asset across different markets without market risk.

  • Identify the characteristics and distinctions among different hedge fund strategies, encompassing market neutral, directional, and arbitrage.
verifed

Verified Answer

IA
Isabella AversaDec 14, 2024
Final Answer:
Get Full Answer