Hedge funds often use , which is/are defined as .

Question

Quizplus · Accepted Answer

Hedge funds often use leverage, which means borrowing money to buy other assets. This allows them to amplify their returns but also increases their risks. The use of derivatives or short-term T-bills is not specific to hedge funds and may be used by other types of investors. Dividends are profits earned from owning stocks, while mutual funds are not typically used by hedge funds as they aim to generate high returns through active management rather than passive investing in a bundle of assets.

Hedge Funds Often Use , Which Is/are Defined as