Food-For-The-Poor Foundation is allowed to own both long and short positions. They have hired an investment manager that has constructed an equity portfolio with a beta of zero. They have accomplished this by having a long position in stocks, and then balancing that market exposure by taking a short equity position (selling shares). By maintaining a zero portfolio beta, the manager expects portfolio returns to be uncorrelated with equity market returns. This type of strategy is called _____.

A) style drift

B) a returns-based strategy

C) a market-neutral strategy

An equity investment manager is responsible for establishing the sale discipline for the portfolios he manages. Historically he has found that if he sells a stock when the business fundamentals of the issuing company deteriorates, he avoids further price decline of that stock. This type of selling discipline is called the _____.

A) opportunity cost discipline

B) valuation level sell discipline

C) target price discipline

D) deteriorating fundamentals discipline