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Options
- A
Only 1
-
Only 2
Correct answer
- C
Both 2 and 3
- D
Both 1 and 3
Why this is the answer
The objective of an arbitrage fund is not to provide capital appreciation, but rather to capitalize on price discrepancies between the cash and futures markets. These funds aim to generate returns similar to debt funds, with a lower risk profile compared to equity funds.
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