Multiple Choice Questions

1. The primary aim of many hedge funds is to:

a) Increase exposure to foreign investments.

b) Minimize risk and deliver positive returns under all market conditions.

c) Avoid cumbersome regulation.

d) Generate the highest return possible.

2. Assets within a hedged structure of a long/short equity fund are ideally:

a) Exposed to stock picking risk only.

b) Exposed to both stock picking and market risk.

c) Exposed to market risk only.

d) Risk-free.