Which of the Following Statements Is FALSE

question 6

Multiple Choice

Which of the following statements is FALSE?

• A)A short sale is a transaction in which you buy a stock that you do not own and then agree to sell that stock back in the future.
• B)The efficient portfolios are those portfolios offering the lowest possible level of volatility for a given level of expected return.
• C)A positive investment in a security can be referred to as a long position in the security.
• D)It is possible to invest a negative amount in a stock or security,which is called a negative position.

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Definitions:

Recordkeeping

The process of maintaining records or documents that track an organization's financial transactions and history.

External Users

Individuals or entities outside of a company who use its financial statements and other reports to make informed decisions, such as investors, creditors, and regulatory agencies.

Internal Users

Individuals or groups within an organization, such as management and employees, who use financial information to make decisions about operations.

Managerial Accounting

The methodology of pinpointing, quantifying, evaluating, and understanding accounting data to assist managers in making knowledgeable decisions for their business.