Reference no: EM133061060
1. You purchase 1,000 American Depository Receipts (ADRs) of Sony Corporation (ticker symbol SNE) at $104.50 per ADR. Over the course of the next month, the Japanese yen appreciates by 4%, while the price of Sony Corporation's shares listed in Japan declines by 2.5%. The Company does not pay a dividend during this period.
From this information alone, you can colclude the value of your position in the ADRs has:
A. Decreased by $2,612.50
B. Increased by $1,463.00
C. Increased by $4,180.00
D. Not enough information has been provided.
2. Which of the following hedge fund strategies would you expect to have the greatest positive return correlation with the MSCI World Index?
A. Investing globally in distressed securities while making active use of CDS
B. A mortgage arbitrage strategy
C. A global macro strategy that includes investing long and short in U.S. stocks
D. A global 'deep value' equity strategy that favors holding cash over shorting stocks