Answered

Find the best solutions to your problems with the help of IDNLearn.com. Receive prompt and accurate responses to your questions from our community of knowledgeable professionals ready to assist you at any time.

Statistical arbitrage is a version of a ______ strategy. A. relative value B. directional C. divergence D. market neutral

Sagot :

Statistical arbitrage is a version of a market neutral strategy.

What is a market neutral strategy?

A market-neutral strategy is a type of investment strategy that seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.

  • Known as a market-neutral strategy, the investment selections seek to avoid significant losses
  • The long and short positions serve as a hedge to one another.
  • The two main types of market-neutral strategies are fundamental arbitrage and statistical arbitrage.
  • The main investment objective is absolute returns rather than relative returns.

Learn more about market neutral strategy here:

https://brainly.com/question/7302899

#SPJ4

Statistical arbitrage is a version of a market-neutral strategy. So the correct answer is an option (D) i.e. market neutral.

What is a market-neutral strategy?

  • A market-neutral strategy is a type of investment strategy that seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.
  • Known as a market-neutral strategy, the investment selections seek to avoid significant losses
  • The long and short positions serve as a hedge to one another.
  • The two main types of market-neutral strategies are fundamental arbitrage and statistical arbitrage.
  • The main investment objective is absolute returns rather than relative returns.

Learn more about market neutral strategy here:

brainly.com/question/7302899

#SPJ4

We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Thank you for choosing IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more solutions.