To determine:
For an investor's entire retirement portfolio, can market-neutral hedge fund be a good candidate.
Introduction:
Market neutral fund means by using the short and long positions, the investor can make a profit in a volatility trending environment.
Explanation of Solution
An investor's entire retire portfolio should not include market neutral hedge fund, because it is not a good option for retired investors. In fact, a retired investor should not involve any type of hedge in their portfolio. The hedge fund usually reveals a higher risk and the government also does not made proper rules and regulation.
So, it is advisable to a retired investor that he should not invest in a market neutral hedge fund.
Therefore, retired investors should not involve the market neutral fund in their portfolio.
Want to see more full solutions like this?
- 3 years ago, you invested $9,200. In 3 years, you expect to have $14,167. If you expect to earn the same annual return after 3 years from today as the annual return implied from the past and expected values given in the problem, then in how many years from today do you expect to have $28,798?arrow_forwardPlease Don't use Ai solutionarrow_forwardEnds Feb 2 Discuss and explain in detail the "Purpose of Financial Analysis" as well as the two main way we use Financial Ratios to do this.arrow_forward
- Nikes annual balance sheet and income statement for 2022-2023 and 2024arrow_forwardWhat is the value at the end of year 3 of a perpetual stream of $70,000 semi-annual payments that begins at the end of year 7? The APR is 12% compounded quarterly.arrow_forwardFirm A must pay $258,000 to firm B in 10 years. The discount rate is 16.44 percent per year. What is the present value of the cash flow associated with this arrangement for firm A? -I got the answer of 56331.87773=56332 (rounded to the nearest dollar), but it says incorrect.arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT