The long-short strategy is one of the most common strategies in the hedge fund industry and relies upon:

A) reducing risk
B) outperformance
C) performance fees
D) market mispricing

Question

The long-short strategy is one of the most common strategies in the hedge fund industry and relies upon:

A) reducing risk
B) outperformance
C) performance fees
D) market mispricing

Quizplus · Accepted Answer

The long-short strategy is one of the most common strategies in the hedge fund industry and relies upon market mispricing.The strategy involves taking long positions in securities that are undervalued and short positions in securities that are overvalued.

The Long-Short Strategy Is One of the Most Common Strategies