2022 INV2601 Semester 1 assignment 1.

2022 INV2601 Semester 1 assignment 1. Which investment do these characteristics belong to? a. It is illiquid thus may not be able to redeem at any time. b. There is usually a lock-in period to prevent aborting any strategy. c. There is a private pool of investment capital that is limited to the partners. d. It is managed by a general partner who earns fees based only on investors’ profits, not losses. a. Unit trusts b. Hedge funds c. Investment trusts d. Participation bonds schemes Clear my choice Question 2 Not yet answered Marked out of 1.00 Flag question Question text Which transaction involves the sale of shares the investor does not own with the intention of buying them back at a later stage at a lower price? a. Market orders b. Limit orders c. Short sales d. Margin transactions Clear my choice Question 3 Not yet answered Marked out of 1.00 Flag question Question text The .....(i)..... decision is made by an investor to be on the capital market line (CML) efficient frontier as he initially decides to invest in the market portfolio; while the .....(ii)..... decision is made by the investor when he either borrows or lends to attain his preference on the CML.