52. Benefits of CDS:

A. Hedging interest rate risk, A long positioning vehicle that does not require an initial cash outlay, Access to maturity exposures not available in the cash market

B. Hedging exchange rate risk, A short positioning vehicle that does require an initial cash outlay, Access to maturity exposures not available in the cash market

C. Hedging credit risk, A short positioning vehicle that does not require an initial cash outlay, Access to maturity exposures not available in the cash market

D. None of the above

53. Examples of a Credit Trading strategies:

A. Curve trades: Buy short-dated CDS protection, sell long-dated CDS protection on the same name. High basis risk.

B. Index arbitrage: Buy protection on individual names and sell protection on an index of different names

C. Cross-over: Sell protection on investment grade names and buy protection on non-investment grade names

D. Pair trades: Long one credit and short another that is generically comparable. High basis risk.

54. When investing in Hedge Funds, one needs to know that:

A. Because it does consider skewness, mean-variance analysis is ideal for analysing hedge funds

B. Because it does consider kutosis, mean-variance analysis is ideal for analysing hedge funds

C. Because it does not consider skewness, mean-variance analysis only looks at the good side of hedge funds while ignoring the downside.

D. The mean-variance analysis is ideal for analysing hedge funds