36) You manage a $10 million hedge he likelyyen risk-free rate? a) 2.35% b) 398% c)4.sm-, Assumetheras10millionhedgefundportfolio withbeta-12 andalpha-2% perd quarter and the current value of the S&P 500 Index is 1,200 ve alpha, but you are afraid that the stock market may fall and you your portfolio? risk-free rate is 2% per q You want to exploit the positive alpha, but you ar 00 future conu to nedge you want to hedge your portfolio by selling 3-mon a) 35 ow many S&P 500 contracts do you need to sell to hedge d) 64 b) 40 c) 60 successul, Thisclude past returns of funds to attract new clients only if they were successful. This is bias. 37 Hedge funds ds often d)backfill c) incentive called-bas. a) long-short b) survivorship 3) Hedge finds tat of assets inv in particular market sectors according to the fund manager's outlook are called ion funds b) multi-strategy funds c) event-driven funds d) market-neutral funds ssetes that change strategies and types of securities invested and also vary the proportions 3 retums of equity hedge funds as compared to the S&P 500 Index reflect positive d) interest rate ystematic cmpensation for risk. a) marketb) liquidityc) s u and the index is currently at 1,600, how many contracts should the fund sell to make its overall position market neutra!? a) 3,000 b) 3,400 )3,600 40) A is chrnd manages a $2.4 billion equity portfolio with a beta of.7. If the S&P contract multiplier d) 4,200