Actively managed derivative-based hedge funds try to earn excess returns by: A) finding pricing relationships that are not in equilibrium or by following momentum strategies. B) finding pricing relationships that are not in equilibrium only. C) neither finding pricing relationships that are not in equilibrium nor by following momentum strategies.
A? Global Macro does everything to achieve higher returns.
can you post the answer?
A is correct. but can you provide an example of “following momentum strategy”? thanks.
I don’t remember any example but Actively managed derivative-based hedge funds can do anything and that is why I chose A. What’s the answer of that ethics one?
A is correct. I read this SS yesterday (forgot which page) but it discussed that Momentum Strategies involve exploiting prices that are not in equilibrium