A hedge fund has put on the following relative value trade: long shares of Apple, short shares of Facebook, dollar neutral. Which might be the fund managers view (separate from net carry considerations)? ******

1. Apple will decline in price, Facebook will rise
2. Apple will rise in price, Facebook will decline
3. Apple and Facebook will both decline to the same degree
4. Apple and Facebook will both rise to the same degree
5. Apple and Facebook may both decline but, if so, Apple will decline relatively less
6. Apple and Facebook may both decline but, if so, Apple will decline relatively more
7. Apple and Facebook may both rise but, if so, Facebook will rise relatively less
8. Apple and Facebook may both rise but, if so, Facebook will rise relatively more

B, E, G

The answers are provided can someone please give an explanation