Practice

Question 1

Which of the following strategies is most likely to be pursued by a private equity fund? (63B, D)

Answer 1

Leveraged Buyouts (Use debt financing to acquire control of a publicly traded firm)

Question 2

Which of the following is least likely a type of Hedge Fund strategy? (D)

Answer 2

ETF

Question 3

Compared with purchasing commodities(benefit: Convenience Yield), long positions in commodity derivatives (Commodities Futures) offer the benefit of (63 D)

Answer 3

Benefit: No storage costs

Cost: Retain the risk and correlation characteristics of the udnerlying commodities