Case "Strategic Capital Management" Assignment questions: 1. What are the costs and benefits of investing in a hedge fund? 2. Build a market value balance sheet for Ubid that would provide a rough market valuation of the firm: assets, liabilities, etc. Briefly discuss additional assumptions you have to make. 3. Build a (potential) market value balance sheet for Ubid and Creative Computers (you’ll have to make assumptions about market values f some of the objects along the way). 4. Elena is evaluating several available options: a) buy Creative Computers, b) buy Ubid, c) buy both CC and Ubid, d) do something else to get a profitable return. As a financial advisor, what would you recommend her to do? 5. Sketch a potential implementation of the strategy you’re recommending. Assume that entering long and short positions requires you to satisfy margin requirements. What are the market values of Elena’s trading position, including her assets and liabilities? How would they change when the prices of Ubid and CC shift?