Alternative investment vehicles, such as hedge funds, offer potentially high returns for investors willing to stomach the corresponding high-risks and opportunity costs. Additionally, depending on the fund’s methodology, some funds purport to offer limited market exposure in conjunction with their high return potential: they act as true “alternative” investments to the market. The objective of this paper is to analyze hedge funds to determine in what respects they are exposed to the market and systematic risk factors.
Worcester Polytechnic Institute
Interactive Qualifying Project
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