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Hello everyone! This is my very first post here!
I am first year studying portfolio management in an university. We have an end term homework on financial derivates with some questions to answer. Although I answered on most of them I still have two questions that I can't find information for. I'll be greatful if the comunity here helps me out.
1. What is the most basic hedging strategy to insure the profit of a mutual fund? Why?
2. During the financial crisis of 2008, in the first month after the market collapse, most of the investment funds' hedging strategies held up and the investors remained calm but in the next month even those strategies crashed. Why did this happen?
I would like to thank you for your help in advance!
I am first year studying portfolio management in an university. We have an end term homework on financial derivates with some questions to answer. Although I answered on most of them I still have two questions that I can't find information for. I'll be greatful if the comunity here helps me out.
1. What is the most basic hedging strategy to insure the profit of a mutual fund? Why?
2. During the financial crisis of 2008, in the first month after the market collapse, most of the investment funds' hedging strategies held up and the investors remained calm but in the next month even those strategies crashed. Why did this happen?
I would like to thank you for your help in advance!
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