Chartered Investment Manager (CIM®) — Portfolio Management Techniques (PMT®)

A hedge fund employing a long/short equity strategy aims to profit by:

Investing only in government bonds Buying undervalued stocks and short-selling overvalued stocks simultaneously Tracking a benchmark index with minimal tracking error Holding cash equivalents during market volatility

Correct Answer:

Buying undervalued stocks and short-selling overvalued stocks simultaneously

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