The Risk Free Rate of Return Is Often Measured by the Return

question 24

True/False

The risk free rate of return is often measured by the return on US Treasury Bills.

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Definitions:

Leverage

The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

Hedge Fund Advantage

A benefit unique to hedge funds, often referring to their ability to employ diverse and complex strategies to achieve higher returns compared to traditional investment vehicles.

Divesting

The process of selling off subsidiary business interests or investments, typically to refocus core activities or raise capital.