Equity fund
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.
Question 3: Risk is a main consideration when managing an equity portfolio. Please 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.
