Multiple Choice
The difference between market neutral and long/short hedges is that market neutral hedge funds _________.
A) establish long and short position on both sides of the market to eliminate risk and to benefit from security asset mispricing, whereas long/short hedge establish positions only on one side of the market
B) allocate money to several other funds while long/short funds do not
C) invest in relatively stable proportions of stocks and bonds while the proportions may vary dramatically for long/short funds
D) invest only in equities and bonds while long/short funds use only derivatives
Correct Answer:

Verified
Correct Answer:
Verified
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