The students are required to perform: 4 Essay questions:
Question 1: Alternative funds assets under management have been growing during the last 30 years and are now one of the main forces within the stock markets. Explain the main differences between an alternative fund and a long only fund (equity fund only).
Question 2: Explain in a detailed manner the main challenges in managing a long only equity fund. (refer to investment process, risk process, etc).
Question 3: Risk is a main consideration when managing an equity portfolio. Explain a detailed manner the following key terms:
3.1. Market neutral / risk neutral
3.2. Risk averse
3.3. Hedging – on an alternative fund and on a long only fund
3.4. Volatility
3.5. Expected return
Question 4: Describe the various equity mutual funds available to investors and the main differences within the various types of equity mutual funds.
