Question #11
Reading: Reading 34 Hedge Fund Strategies
PDF File: Reading 34 Hedge Fund Strategies.pdf
Page: 4
Status: Incorrect
Correct Answer: A
Your Answer: C
Question
The hedge fund strategy that typically requires the longest time commitment and has the greatest variability of investment returns is:
Answer Choices:
A. distressed securities
B. fixed income arbitrage
C. merger and acquisition funds
Explanation
Relative to other hedge fund strategies, distressed debt takes a long time to work out as
legal proceedings grind through the system. Distressed debt can generate spectacular
investment returns or complete losses.