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.

Question

Quizplus · Accepted Answer

A 120/20 fund means the fund can short sell up to 20% of its net assets and use the proceeds to increase its long position to 120% of its net assets.

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