problem

and can take on higher levels of risk B. a profit can always be made if each investment has an off-setting position to cover any losses C. proper diversification can be attained with larger sums of money and fewer assets D. strategies such as program trading and arbitrage are only successful if leverage (borrowed funds) are used 28. Which of the following is best associated with hedge fund investors? A. employees in a 401k pension plan. B. commercial banks C. high net worth individuals and institutions. D. investors seeking to hedge their business price risk. Part 2: Problems 2. Calculate the annual cash flows of a $500,000, 12-year fixed-payment deferred annuity earning a guaranteed 5 percent per year if annual payments are to begin at the end of year 4. (1.0 point)