26-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter26TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.______arethedominantformofinvestinginsecuritiesmarketsformostindividuals,but______haveenjoyedafargreatergrowthrateinthelastdecade.A.HedgeFunds;hedgefundsB.Mutualfunds;hedgefundsC.HedgeFunds;mutualfundsD.Mutualfunds;mutualfundsE.Noneoftheoptionsarecorrect.2.Likemutualfunds,hedgefundsA.allowprivateinvestorstopoolassetstobemanagedbyafundmanager.B.arecommonlyorganizedasprivatepartnerships.C.aresubjecttoextensiveSECregulations.D.aretypicallyonlyopentowealthyorinstitutionalinvestors.E.arecommonlyorganizedasprivatepartnershipsandaretypicallyonlyopentowealthyorinstitutionalinvestors.3.Unlikemutualfunds,hedgefundsA.allowprivateinvestorstopoolassetstobemanagedbyafundmanager.B.arecommonlyorganizedasprivatepartnerships.C.aresubjecttoextensiveSECregulations.D.aretypicallyonlyopentowealthyorinstitutionalinvestors.E.arecommonlyorganizedasprivatepartnershipsandaretypicallyonlyopentowealthyorinstitutionalinvestors.4.Alpha-seekinghedgefundstypically______relativemispricingofspecificsecuritiesand______broadmarketexposure.A.beton;betonB.hedge;hedgeC.hedge;betonD.beton;hedgeE.Noneoftheoptionsarecorrect.5.Hedgefunds______engageinmarkettiming______takeextensivederivativepositions.A.cannot;andcannotB.cannot;butcanC.can;andcanD.can;butcannotE.Noneoftheoptionsarecorrect.6.Theriskprofileofhedgefunds______,makingperformanceevaluation______.A.canshiftrapidlyandsubstantially;challengingB.canshiftrapidlyandsubstantially;straightforwardC.isstable;challengingD.isstable;straightforwardE.Noneoftheoptionsarecorrect.26-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.7.SharesinhedgefundsarepricedA.atNAV.B.asignificantpremiumtoNAV.C.asignificantdiscou...
