1-

For which of the following strategies do fund managers try to identify mispricing relationships between securities that, in theory, should not exist?

Multiple Choice

• market neutral

• arbitrage

• distressed securities

• macro

• market timing

2-

Which one of the following is the amount of money that an investor has committed to invest in a fund over its entire life?

Multiple Choice

• guaranteed funds

• guaranteed capital

• investors capital

• committed funds

• committed capital

3-

You own 1,300 shares of ABC stock that is currently priced at $36 a share. Given this price, the option delta for a $34 call option on this stock is .724. How many $34 call options do you need to hedge against a $1 change in the price of the stock?

Multiple Choice

• buy 1,570 options

• buy 2,072 options

• write 1,769 options

• write 2,072 options

• write 2,439 options

4-

In which of the following steps would a venture capitalist formalize and agree upon the terms of a financing deal?

Multiple Choice

• valuation

• deal structure

• value creation

• deal flow

• exit