Lynet Xu is the Chief Investment Officer for the North University Endowment Fund $($the Fund$),$ which is

based in Europe. The Fund's investment committee recently made the decision to add hedge funds to

the Fund's portfolio to increase diversification. Xu meets with Yolanda Anderson, a junior analyst, to

discuss various hedge fund strategies that might be suitable for the Fund. Anderson tells Xu the

following:

Relative value strategies tend to use minimal leverage.

Long$/$short equity strategies are typically not exposed to equity market beta risk.

Global macro strategies come with naturally higher volatility in the return profiles typically

delivered.

Which of the above statements is correct and why?