1a)

For each of the statements below, assess whether the statement is TRUE (always correct), FALSE (always wrong) or UNCLEAR (meaning correct under some circumstances, wrong under other circumstances to define). Provide a detailed explanation/illustration of why this is the case.

a) The spread strategy of hedge funds can generate a gain in spite of share market prices going down

b) The pool of securitised loans is divided into several tranches with different levels of credit risk