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Restrict portfolio managers direct usage of leverage

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University Endowment funds usually restrict Portfolio Managers' direct usage of leverage, derivatives and short selling because:

Group of answer choices

1. Short selling, derivatives, and leveraged positions require margin calls.

2. Derivatives, Short selling and Leverage increase the risk of the fund

3. Portfolio Managers may generate very high returns that may impact the fund negatively

4. Portfolio Managers do not understand how to use leverage, derivatives, and short position effectively

Regulations on short positions, leverage and derivatives can change frequently

Reference no: EM132622805

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