When a Short-Selling Hedge Fund Advertises in a Prospectus That

question 10

Multiple Choice

When a short-selling hedge fund advertises in a prospectus that it is a 120/20 fund,it means that this fund may sell short up to ______ every $100 in net assets and increase the long position to __________ of net assets.

• A) $120; $20
• B) $20; $120
• C) $20; $20
• D) $120; $120

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Definitions:

Sexual Imagery

Visual material that depicts sexual acts or content, often aimed at arousing the viewer.

Majority

The larger part or more than half of a total group, often referring to the group in power or with the most members in a demographic or decision-making context.

Minority

A subgroup within a population that is fewer in numbers than the majority and may be differentiated by characteristics such as race, religion, language, or sexual orientation.

Night Terrors

A sleep disorder causing feelings of terror or dread, usually occurring during non-REM sleep stages, and often accompanied by screaming, thrashing, and a high degree of difficulty in waking the sufferer.