Alternative Investments Q80

0. BMA hedge fund restricts its investment universe to KSE, an actively traded stock exchange of Pakistan. Its NAV will be calculated using:

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Option : A
Explanation : BMA is most likely to use average quotes. The securities are actively traded so no liquidity adjustment is required. If the fund uses bid/ask prices, the fund would use ask prices for shorts and bid prices for longs, i.e. the prices at which the positions could be closed

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