Which of the following statements regarding 130/30 strategies is false?
A) Analyst can make full use of their knowledge of undervalued and overvalued stocks.
B) Long positions up to 130% of the value of the portfolio cab be made.
C) Short positions up to 30% 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
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