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I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.
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ABSTRACT
Researchers have recognized the importance of systematic liquidity risk, and financial hedging for asset prices. However, an important and yet unanswered question is why some stocks are more exposed to fluctuations in market liquidity than other stocks with similar liquidity and characteristics. Promising market-place hedge-funds have been evaluated as one amongst many approaches in hedge-fund efficacy measurement discourse. Nonetheless, all these writers do not investigate these funds in element or strive to extort the chief distinctions among these funds and other hedge funds.
Table of Contents
ACKNOWLEDGEMENTi
DECLARATIONii
CHAPTER 01 INTRODUCTION1
Background1
Problem Statement1
Research Questions2
CHAPTER 02 LITERATURE REVIEW3
What is liquidity risk?3
What are the hedge funds?4
Business Risk5
Risks Generating Strategies6
Related Research7
Hedging Model9
Summary of Institutional Ownership10
Empirical Methods10
Measurement of Liquidity Risk11
An Event Study of Liquidity Crises12
CHAPTER 03 METHOLOGY13
Introduction13
Research objective13
Data Collection Method13
Techniques for Finding Data14
CHAPTER 04ANTICIPATED RESULTS AND DISCUSSION15
Anticipated Results15
Discussion16
CHAPTER 05 CONCLUSION AND RECOMMENDATION17
Conclusion17
Recommendation18
References20
APPENDIX23
Comparison growth of hedge funds and mutual funds23
Investment style of hedge funds23
Questionnaire for Hedge Fund Investors24
Related Diagrams25
CHAPTER 01 INTRODUCTION
“Some hedge fund managers are coming under increased pressure to liquidate their positions as banks ask for more collateral to back funds'. Many investors and regulators worry whether a broad hedge-fund deleveraging will create more risk for the overall financial system.” “Hedge funds are selling billions of dollars of securities to meet demands for cash from their investors and their lenders, contributing to stock market's nearly 10% drop over the past two days.”
Background
In economic boom, the degree of optimism usually increases the mind to invest, and reduces the perceived risk and increasing accordingly exposure to it, producing a stronger inverse effect in the case when change cycle exacerbating the pessimism of the agents. For alternative investments such as Hedge Funds increase should increase the con- conformity and knowledge of individuals regarding the use of these instruments investment portfolios. In this research will be focusing on hedge funds and their validity. How attractive are, and for which reasons recently they have been so attractive to many investors. What are the risks that we facing in every day trading with hedge funds and how this can be avoid in future investments, or if it is possible to control the risk that they facing.
Problem Statement
The financial markets turmoil in 2008 and 2009 has intensified the debate over the impact of institutional ownership on systematic liquidity risk. Policy makers, practitioners, and academic researchers have expressed concerns that institutional selling could increase the exposure of assets held by institutional investors to systematic liquidity shocks, and create more ...