WITH RESPECT TO QUESTION 3 OF BUTT, STRIPES SHOULD MOST LIKELY...

41. With respect to question 3 of Butt, Stripes should most likely reply:

A. Short‐selling does not remove any constraints to long‐only investing; however, it will give

access to better opportunities.

B. While long‐only managers can express a negative view by not holding a security in the

fund’s benchmark, they are constrained in their negative view by the size of the holding in

the benchmark. Short‐sellers do not have this constraint.

C. Short‐selling removes the constraint of always having to look for undervalued securities.