Multiple Choice
Which of the following statements regarding 130/30 strategies is FALSE?
A) Analysts can make full use of their knowledge of undervalued and overvalued stocks.
B) Long positions up to 130 percent of the value of the portfolio can be made.
C) Short positions up to 30 percent of the value of the portfolio can be made.
D) 130/30 strategies are not very popular due to the increased risk of hedging.
E) The use of short positions creates leverage.
Correct Answer:
Verified
Correct Answer:
Verified
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