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

question 40

Multiple Choice

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

---

Definitions:

Perpetrators

Individuals who commit illegal acts or crimes.

Medial Prefrontal Cortex

A region of the frontal lobe of the brain involved in decision making, social cognition, and self-referential processing.

Self-Knowledge

An individual’s understanding and awareness of their own personality, emotions, motivations, and capabilities.

Evaluation Tasks

Activities designed to assess the performance, quality, or suitability of someone or something through careful consideration and analysis.