What Is One Strategy That a Hedge Fund Uses to Maximize

Multiple Choice

What is one strategy that a hedge fund uses to maximize shareholder wealth?

A) Investing exclusively in select exchange traded funds (ETFs) .
B) Using correlation coefficients to create perfectly diversified portfolios.
C) Investing in low yield, government securities.
D) Investing exclusively in market indexes.
E) Levering itself by selling short (shares it does not yet own) .