Reference no: EM132869489

Problem 1: What type of hedge fund must have a net position that is always short?

a) A global short fund.

b) A convertible arbitrage fund.

c) A dedicated short-bias fund.

d) A fixed income arbitrage fund.

Problem 2: Which of the following statements is correct with respect to ETFs?

a) ETFs are considered active investments.

b) All Canadian ETFs are eligible for registered accounts.

c) Trading strategies for leveraged ETFs are relatively simple compared to ETFs that have indexes as their underlying investment.

d) Leveraged ETFs are suitable for long term buy and hold investors.

Problem 3: Why do private equity managers often have access to legitimate inside information?

a) They typically have a large staff to conduct in-depth research.

b) These managers have more contacts, due to their experience, than mutual

fund managers.

c) They demand access so that they can sell their ownership quickly.

d) They often buy majority ownership.