Alpha-seeking hedge funds typically ______ relative mispricing of specific securities and ______ broad market exposure.

A) bet on; bet on
B) hedge; hedge
C) hedge; bet on
D) bet on; hedge
E) None of the options are correct.

Alpha-Seeking

Refers to investment strategies aimed at achieving returns that exceed the benchmarks or indices against which they are compared, often through active management.

Relative Mispricing

A situation where the price of an asset does not accurately reflect its value, usually in comparison to similar assets.

Market Exposure

The degree to which an investment or portfolio is exposed to market risk.