Question #10
Reading: Reading 34 Hedge Fund Strategies
PDF File: Reading 34 Hedge Fund Strategies.pdf
Page: 3
Status: Unattempted
Correct Answer: A
Question
Which one of the following is least likely considered to be an argument to include hedge funds in a diversified portfolio?
Answer Choices:
A. Access to a larger investment universe
B. Greater transparency of investment management decisions and ability to pursue more aggressive strategies
C. Flexibility to use short selling and derivative contracts and greater use of leverage
Explanation
Greater transparency is generally not an attributed to hedge funds as many managers
attempt to hide their activities for competitive purposes.