Targeted Absolute Return Funds tech info Flashcards

1
Q

Targets absolute return funds

A
  • Aim to produce positive returns regardless of stock market performance
  • Target/no guarantee they will achieve
  • returns poor
  • difficult to understand
  • objectives unclear
  • use short and long positions

Shorting borrows a stock they believe will fall, sell shares at current price borrowed, buys when falls, returns shares borrowed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly