9. It is worthwhile to note that the Barclay CTA Composite Index is---------correlated with stock indices and has a very------correlation with the hedge fund indices.

A. negatively: low

B positively; low

C negatively: high

D positively; high

Month	Settlement Price
June 06	$74.05
July 06	$75.30
August 06	$75.85
September 06	$76.30
October 06	$76.58
November 06	$76.65

11. Which of the following is (are) TRUE?

A. In a club deal two or more LBO firms work together to share costs

B. In a club deal two or more firms present a business plan

C. In a club deal two or more firms contribute capital to tho deal

D. All of the above

25. Which of the following statements regarding the return characteristics of the Barclay Diversified Traders Index is TRUE?

Distribution characteristics and performance	Mount Lucas Management Index	Barclays Diversified Traders Index
Mean	0.57%	0.74%
Standard deviation	1.74%	3.53%
Sharpe ratio	0.10	0.10
Skewness	0.26	0.35
Kurtosis	1.93	0.11

The Barclay Diversified Traders Index

A. is positively skewed and has a positive Sharpe ratio; therefore, the managed futures do not add value to the investor

B. is positively skewed. The higher standard deviation return indicates that the manager did not add value to the investor.

C. is positively skewed and the positive expected return indicates that the futures manager does not add value to the investor.

D. has a low value for kurtosis, indiating that the return distribution has thin tails and is not greatly influenced by outliers.

48. What does Chapter 11 concern?

A. Liquidation. A trustee is picked, ceases operations, takes control and liquidates assets

B. reorganization or sale cases, and sometimes orderly liquidation

C. IPOs

D. Leveraged buyouts