34. Hedge funds are: A. regulated by the SEC. B. private limited partnerships. C. unregulated by the SEC. D. Both B and C

35. Hedge funds: A. are open about their trading strategies. B. are secretive about their strategies. C. trade using only one brokerage. D. None of the above

36. The first hedge fund used a strategy to: A. hedge against a rising market. B. hedge against a falling market. C. speculate on a rising market. D. speculate on a falling market.

37. Hedge fund managers today construct a portfolio with a beta that: A. is lower in rising markets and a higher in falling markets. B. is higher in rising markets and lower in falling markets. C. is market neutral. D. is not relevant.

38. Market neutral funds are: A. neither long nor short in their strategy. B. only long in their strategy. C. only short in their strategy. D. follow a 45 Market Line.

39. The No-Bias hedge fund strategy is to: A. use multiple stocks to sell short or long. B. pair two stocks in the same industry, sell one short and keep one long. C. use no stocks, only CDs. D. None of the above

40. A fund that always has a negative bias and can be 100% short or a blend of short and long is: A. a no-bias fund. B. an event-driven fund. C. a short-bias fund. D. a long-bias fund.

41. Any change in the value of a company due to an event can create an opportunity to profit. What fund takes advantage of this fact? A. Event-driven fund B. No-bias fund C. Long/short equity fund D. Distressed fund