Alternative Investments Q82

0. Alpha Hedge Fund uses a market neutral strategy. The fund takes long and short positions in relatively liquid instruments for which bid/ask prices are available. Given that the funds employs a conservative valuation approach, it most likely uses:

  • Option : A
  • Explanation : The conservative and theoretically accurate approach is to use bid prices for long positions and ask prices for short positions. These are the prices at which the positions could be closed
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