CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

Which category of hedge fund strategies emphasizes a bottom-up approach?
A. Relative value strategies
B. Macro strategies
C. Equity hedge strategies
Explanation: The equity hedge strategy is commonly referred to as long/short equity. Long-short equity funds take both long and short positions in stocks.

User Contributed Comments 4

User Comment
becinator How does one take both a long and short position in a stock?
ascruggs92 they don't mean one individual stock, they mean stocks in general. You buy stocks you think will go up and sell short the stocks you think will go down
Noblebao how is it bottom-up approach?
hankle It focuses on the individual company first. Macro focuses on top down (economic forces).
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