What is the primary trading cost for a hedge fund that manages a large fund (e.g., $1 billion in total equity capital). O A. Commissions O B. Bid-ask spreads. O C. The slope of the market impact (or price impact) curve. O D. Large hedge funds benefit from economies of scale when it comes to trading costs, in which case none of the above are important.
What is the primary trading cost for a hedge fund that manages a large fund (e.g., $1 billion in total equity capital). O A. Commissions O B. Bid-ask spreads. O C. The slope of the market impact (or price impact) curve. O D. Large hedge funds benefit from economies of scale when it comes to trading costs, in which case none of the above are important.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 4P
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