Hedge funds try to give investors a positive return regardless of stock market performance.They therefore avoid risky practices like short-selling and leveraging.

Question

Quizplus · Accepted Answer

This statement is false. Hedge funds typically use a variety of investment strategies, including short-selling and leveraging, in order to generate positive returns regardless of market performance. However, these practices also come with greater risk.

Hedge Funds Try to Give Investors a Positive Return Regardless