0 of 25 Questions completed
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
0 of 25 Questions answered correctly
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Read the following statements and chose the correct option.
Statement 1: Hedge funds tend to outperform in bull markets and underperform in bear markets.
Statement 2: Though hedge funds have on-average underperformed S&P 500 post 2009, they are quite successful in attracting investors.CorrectIncorrect
An asset management company has 8 funds in their portfolio. As per Jensen’s study how many fund/s have a good chance to consistently beat the markets every year for 3 years out of this portfolio?CorrectIncorrect
Hedge fund strategy based on making predictions out of historical data using back testing to infer patterns.CorrectIncorrect
American Depository receipts (ADRs) are certificates backed by shares of a American company and traded on exchanges in foreign market?CorrectIncorrect
Which of the following fund strategies followed make them ambivalent to market direction.CorrectIncorrect
In a prime broker-hedge fund relationship, all risks are borne by prime brokers as they are the ones who lend money to hedge fund to take risks in securities market.CorrectIncorrect
Ren is a hedge fund working on a strategy which has a 40% chance of producing profit of $10M and 60% chance of 0% return. Total capital is of $100M. What will be expected return from this fund?CorrectIncorrect
hedge funds manager have an inbuilt incentive to keep closing old hedge fund and opening new funds to avoid measures taken to safeguard investors?CorrectIncorrect
Hedge funds have a complex fee structure, a typical fund charges ________________ from investors?CorrectIncorrect
Bill & Ken are wealthy investors and looking forward to invests in hedge funds. While doing their research about hedge funds, they understand that fund managers have a natural tendency to take on more risks as this will fetch them more fees.CorrectIncorrect
Which of the following is incorrect about hedge & mutual funds?
- In hedge funds, investors are not allowed to redeem for certain lock-up period.
- In hedge funds, NAV is reported not so frequently like mutual funds.
- Mutual and hedge funds disclose their investment strategies though hedge funds may not stick to one strategy
- Hedge funds charge management and incentive fee from clients.
Hedge funds and mutual funds are permitted to use leverage in order to increase return for their investors?CorrectIncorrect
MDBC mutual funds uses Meroda as a broker for all their trading activities and in return Meroda advises all its clients to invests in MDBC mutual funds if they want to grow their money. This is known as?CorrectIncorrect
Mark working in ABC fund as a trader was asked to buy huge quantity of shares of TX Ltd. He knew this buying will cause an increase in share price due to huge demand. Knowing this he thought of buying some of them beforehand for himself and called his best friend asking him to buy them too immediately. What is this behaviour called?CorrectIncorrect
Which of the following statements is/are correct about exchange traded funds?
Statement 1: They have a mechanism which ensures that share price equals to NAV
Statement 2: They cannot be shorted like closed-end fundsCorrectIncorrect
ETF are designed in a way that it can only be passively managed?CorrectIncorrect
Which of the following is not an advantage of closed-end funds over open-end funds?CorrectIncorrect
Price fluctuations in a closed-end fund are also affected by demand and supply of shares of that fund?CorrectIncorrect
Which of the following is not a kind of fee chargeable to mutual funds?CorrectIncorrect
Breaking the buck in money market funds is referred to as?CorrectIncorrect
Choose the correct option from the statements below for open-end mutual funds?
Statement 1: Number of outstanding shares can increase/decrease
Statement 2: There are tax advantages for investment in mutual funds.CorrectIncorrect
In regard to various hedge fund strategies, which of the following statement is false?CorrectIncorrect
In hedge funds, a benchmark must be beaten before incentive fees is charged, this is known as?CorrectIncorrect
Closed-end mutual funds increase number of shares outstanding as new shares are purchased?CorrectIncorrect
NA Mutual Fund is an open-ended mutual funds with 15M shares outstanding. They own $500M in equities, $100M in bonds & $20M in cash. Payables amount to $8.75M. What is fund’s net asset value (NAV)?CorrectIncorrect