Podcast
Questions and Answers
Which alternative investment strategy involves long and short equity positions of approximately the same size to generate returns that do not depend on the direction of the stock market?
Which alternative investment strategy involves long and short equity positions of approximately the same size to generate returns that do not depend on the direction of the stock market?
- Credit spread arbitrage
- Equity market neutral (correct)
- Fixed-income arbitrage
- Convertible arbitrage
What is the primary purpose of convertible arbitrage as an alternative investment strategy?
What is the primary purpose of convertible arbitrage as an alternative investment strategy?
- To profit from unique corporate events
- To bet on anticipated movements in market prices
- To exploit price anomalies between related interest rate securities
- To exploit mispricing between convertible securities and the underlying stock (correct)
What is the characteristic feature of fixed-income arbitrage as an alternative investment strategy?
What is the characteristic feature of fixed-income arbitrage as an alternative investment strategy?
- High leverage, typically 10 to 30 times the capital employed (correct)
- Profiting from unique corporate events
- Generating returns independent of the stock market's direction
- Exploiting mispricing between convertible securities and the underlying stock
Which alternative investment strategy profits from price anomalies between related interest rate securities?
Which alternative investment strategy profits from price anomalies between related interest rate securities?
In alternative investment strategies, which approach involves exploiting inefficiencies or differences in the pricing of related securities?
In alternative investment strategies, which approach involves exploiting inefficiencies or differences in the pricing of related securities?
What is the purpose of event-driven strategies in alternative investments?
What is the purpose of event-driven strategies in alternative investments?
In yield spread arbitrage, what actions would a manager take if the credit spread is wider than usual?
In yield spread arbitrage, what actions would a manager take if the credit spread is wider than usual?
What is the primary focus of a merger strategy (risk arbitrage strategy) in event-driven strategies?
What is the primary focus of a merger strategy (risk arbitrage strategy) in event-driven strategies?
What distinguishes high-yield bond strategy from other strategies?
What distinguishes high-yield bond strategy from other strategies?
What does a distressed securities strategy primarily invest in?
What does a distressed securities strategy primarily invest in?
What is the main characteristic of global macro funds?
What is the main characteristic of global macro funds?
What distinguishes dedicated short bias from a dedicated short strategy?
What distinguishes dedicated short bias from a dedicated short strategy?
What type of securities do managed futures strategies refer to?
What type of securities do managed futures strategies refer to?
How do managers typically rank emerging market countries for emerging markets alternative funds?
How do managers typically rank emerging market countries for emerging markets alternative funds?
What does a long/short equity strategy involve?
What does a long/short equity strategy involve?
What does an emerging markets alternative fund primarily invest in?
What does an emerging markets alternative fund primarily invest in?
In yield spread arbitrage, what actions would a manager take if the credit spread is narrower than usual?
In yield spread arbitrage, what actions would a manager take if the credit spread is narrower than usual?
What distinguishes a high-yield bond strategy from other strategies?
What distinguishes a high-yield bond strategy from other strategies?
What is the primary focus of a merger strategy (risk arbitrage strategy) in event-driven strategies?
What is the primary focus of a merger strategy (risk arbitrage strategy) in event-driven strategies?
What type of securities do managed futures strategies refer to?
What type of securities do managed futures strategies refer to?
What does a long/short equity strategy involve?
What does a long/short equity strategy involve?
What does a distressed securities strategy primarily invest in?
What does a distressed securities strategy primarily invest in?
What is the main characteristic of global macro funds?
What is the main characteristic of global macro funds?
What is the purpose of event-driven strategies in alternative investments?
What is the purpose of event-driven strategies in alternative investments?
Which alternative investment strategy involves long and short equity positions of approximately the same size to generate returns that do not depend on the direction of the stock market?
Which alternative investment strategy involves long and short equity positions of approximately the same size to generate returns that do not depend on the direction of the stock market?
Which alternative investment strategy profits from price anomalies between related interest rate securities?
Which alternative investment strategy profits from price anomalies between related interest rate securities?
What national instrument regulates ETFs when they are structured as commodity pools?
What national instrument regulates ETFs when they are structured as commodity pools?
What type of document must ETFs produce and file, and is distributed through the dealer where the ETF is purchased?
What type of document must ETFs produce and file, and is distributed through the dealer where the ETF is purchased?
When an ETF provider wants to launch a new ETF, how are ETFs created or redeemed?
When an ETF provider wants to launch a new ETF, how are ETFs created or redeemed?
What do designated brokers give in exchange for the basket of shares when creating or redeeming ETFs?
What do designated brokers give in exchange for the basket of shares when creating or redeeming ETFs?
Why are ETFs relatively cheap in terms of Management Expense Ratios (MERs) compared to mutual funds?
Why are ETFs relatively cheap in terms of Management Expense Ratios (MERs) compared to mutual funds?
Where are dealers required to make the prospectus available to investors?
Where are dealers required to make the prospectus available to investors?
What is the primary benefit of exchange-traded funds (ETFs) compared to other managed products and mutual funds?
What is the primary benefit of exchange-traded funds (ETFs) compared to other managed products and mutual funds?
What is a characteristic feature of synthetic exchange-traded funds?
What is a characteristic feature of synthetic exchange-traded funds?
What distinguishes leveraged exchange-traded funds (ETFs) from standard ETFs?
What distinguishes leveraged exchange-traded funds (ETFs) from standard ETFs?
Which type of exchange-traded fund (ETF) primarily invests in companies associated with a commodity?
Which type of exchange-traded fund (ETF) primarily invests in companies associated with a commodity?
What is the main focus of covered call exchange-traded funds (ETFs)?
What is the main focus of covered call exchange-traded funds (ETFs)?
What is the main difference between active-exchanged traded funds and standard (index-based) ETFs?
What is the main difference between active-exchanged traded funds and standard (index-based) ETFs?
In what way does an inverse exchange-traded fund (ETF) differ from other ETFs?
In what way does an inverse exchange-traded fund (ETF) differ from other ETFs?
What type of exchange-traded fund involves constructing a portfolio to achieve a specific objective without following an index?
What type of exchange-traded fund involves constructing a portfolio to achieve a specific objective without following an index?
What is the primary drawback of synthetic exchange-traded funds?
What is the primary drawback of synthetic exchange-traded funds?
Which type of exchange-traded fund enables investors to buy and sell throughout the day, trade on margin, short-sell, and trade options?
Which type of exchange-traded fund enables investors to buy and sell throughout the day, trade on margin, short-sell, and trade options?
