CFA Practice Question
Which of the following is NOT a hedge fund classification?
A. Macro fund.
B. Speculative fund.
C. Event based fund.
Explanation: While different hedge funds have varying degrees of risk and they take positions in risky derivatives which may be quite speculative, this is not one of their classifications, however.
User Contributed Comments 5
| User | Comment |
|---|---|
| samco | So hedge fund classification includes: macro funds, event driven funds and market-neutral funds. Speculation is only a strategy. |
| dealsoutlook | this is how i see it..hedge fund is supposed to protect you from risk while speculating you are taking on more risk than necessary, therefore speculative fund wont be classified as a hedge fund |
| PRICHARD | hedge fund isn't for hedge purpose |
| cong | Hedge funds include: long/short funds, market-neutral fund, global macro fund, event-based fund. |
| Inaganti6 | haha hedge funds by definition are all speculative at some level or scope |