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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
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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
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