Classify each of the following strategies of a hypothetical hedge fund as directional or nondirectional. a. The
Question:
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.
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a Nondirectional The shares in the fund and the short po...View the full answer
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Related Book For 
ISE Investments
ISBN: 9781260571158
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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