Classify each of the following strategies of a hypothetical hedge fund as directional or nondirectional. a. The
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Classify each of the following strategies of a hypothetical hedge fund as directional or nondirectional.
a. The fund buys shares in the India Investment Fund, a closed-end fund that is selling at a discount to net asset value, and sells the MSCI India Index Swap.
b. The fund purchases shares in ExxonMobil and sells short shares of Chevron.
c. The fund buys shares in Generic Pharmaceuticals, betting that it will be acquired at a premium by Pfizer. P-68
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ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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