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© 2014 Pearson Canada Inc.#
- Market-neutral strategies include buying a(n) ____ security and sell ____ of a
higher valued security
A) cheap; more
B) cheap; less
C) expensive; less
D) expensive; more
Answer: A
Diff: 1 Type: MC Page Ref: 287
Skill: Recall
Objective List: 12.6 Examine the role of hedge funds
12.7 Private Equity and Venture Capital Funds
In a venture capital funds, investors' money is invested in ____.
A) private equity investments
B) public company investments
C) mutual fund investments
D) government bond investments
Answer: A
Diff: 1 Type: MC Page Ref: 287
Skill: Recall
Objective List: 12.7 Understanding private equity and venture capital funds
Which of the following funds make investments in new startup businesses?
A) Capital buyout funds
B) Venture capital funds
C) Mutual funds
D) LBO funds
Answer: B
Diff: 1 Type: MC Page Ref: 287
Skill: Recall
Objective List: 12.7 Understanding private equity and venture capital funds
Carried interest is ____.
A) the fee earned by a private equity fund for management of the equity fund investments
B) the percentage of profits earned by a private equity fund for management of the equity fund
investments
C) the interest charged by a private equity fund for short-selling the equity fund investments
D) the carry trade profits earned by a private equity fund for swapping the equity fund
investments
Answer: B
Diff: 1 Type: MC Page Ref: 288
Skill: Recall
Objective List: 12.7 Understanding private equity and venture capital funds