CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

The low correlation between their returns and the traditional assets' is the key feature of

A. Market neutral funds.
B. Long/short funds.
C. Arbitrage-based funds.
Correct Answer: A

These funds seek to take a zero beta exposure to equity markets.

User Contributed Comments 2

User Comment
ankurwa10 when the answer says seek zero beta exposure, how they make money then? pardon my ignorance here.
shederman They make money from alpha, which is normally more than bond returns. So, stock market average returns without the risk/gain of individual shares.
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