14

Functional obsolescence is where a property losses value due to:

a.Bad traffic

b.Outdated building design

c.Wear and tear

d.increase in construction costs

15

Which of the following categories of hedge fund strategies are exposed to event risk?

a.Market directional and opportunistic funds.

b.Corporate restructuring and convergence trading funds.

c.Convergence trading funds and opportunistic funds

d.Corporate restructuring and market directional funds.

16

Global macro hedge fund managers:

a.make spread trades and bets on a particular market.

b.can invest anywhere in the world and often invest across market segments

c.do not use leverage as part of their investment process.

d.cannot invest in derivative securities.

17

Which of the following correctly ranks the hedge fund strategies from the lowest to highest according to their expected portfolio beta?

a.Market neutral, short selling, equity long/short.

b.Equity long/short, short selling, market neutral.

c.Equity/long short, market neutral, short selling.

d.Short selling, market neutral, equity/long short.

18

Which of the following hedge fund strategy is betting one sector of the economy will outperform other sectors

a.relative value

b.directional

c.divergence

d.market neutral

e.arbitrage

19

Which of the following statements regarding funds of hedge funds is FALSE?

a.Funds of hedge funds are best categorized as opportunistic trading strategies.

b.Funds of hedge funds typically do not add additional leverage to the portfolio.

c.The specialized fee schedule of funds of hedge funds makes them cheaper for investors than individual hedge fund strategies.

d.Funds of hedge funds tend to have less risk than individual hedge Fund strategies.

20

Hedge funds often have ______ provisions as long as ______, which preclude redemption.

a.crackdown, 3 months

b.crackdown; several years

c.lock-up; several years

d.lock-up; 3 months