Which of the Following Are Not True Statements

question 109

Multiple Choice

Which of the following are not true statements?

• A) The main effect of factor A is the effect of factor A averaged over the levels of factor B .
• B) The main effect of factor B is the effect of factor B averaged over the levels of factor A .
• C) An interaction effect occurs when the effect of one factor is the same for all levels of the other factor.
• D) All of these statements are false.

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Definitions:

Initial Margin

The minimum amount of funds required to open a position in the futures market, intended to cover potential losses.

Maintenance Margin

The minimum amount of capital that must be maintained in a margin account after a purchase or trade, to cover the risk of loss.

Margin Call

A requirement from a broker for an investor to add more cash or securities to their account to mitigate potential losses.

Short 100 Shares

The action of borrowing 100 shares of a stock to sell them with the expectation of buying them back later at a lower price.