1.which of the following statements is not correct

The spread strategy used by hedge funds

A is immune to general shifts in the market

B is a high risk strategy

C earns a profit if the more expensive security lowers in price and the cheaper security increase in price

D requires the borrowing of a security

E bets on the difference in price between two securities

2.which of the following operation is covered short selling?

putting a sale order for a security that

a has been subject to a borrowing agreement and has been delivered before the sell order

b will be borrowed after the sell order

c has been subject to a borrowing agreement before the sell order but has not been delivered before the sell order

d has been bought previously and has been delivered before the sell oder

e has been owned by the seller for less than six month

3.a prior purchase agreement is a and authorised in Australia

a naked short sale; is

b covered short sales ;is

c covered short sale; is not

d ordinary sale ;is

e naked short sales ;is not