Hedge Funds Quiz 7

Assume you expect the stock price of Volkswagen to decrease in the next 30 days. Which of the positions below should you take?

• Long position

• Short position

What is a short squeeze?

• A spike in stock prices because short sellers are forced to buy back stocks in order to close positions.

• The subtitle of the famous movie/book "The Big Short"

Consider the famous quote from John M. Keynes:

"Markets can remain ______ longer than you can remain solvent."

Which word is missing?

• irrational

• weird

• closed

• open

Which of the following is not a particular risk of short selling?

• Short squeezes

• Funding liquidity risk

• Recall risk

• Sharpe Ratio

True or False: Due to short sale constraints, stock prices are more likely to reflect optimistic expectations.

• True

• False

True or false: A nightmare in shortville is the title of the newest Stephen King Novel.

• True

• False

Which of the statements below describes a margin call?

• An information issued by a broker that the maintenance margin is not covered.

• A call from your professor, informing you that the margin in your Hedge Funds thesis is too small

Which of the strategies below is no example for quant investing?

• Factor investing

• Pairs trading

• Trading in dual-listed companies

• Trading doge coin