Which of the Following Statements Is True

question 49

Multiple Choice

Which of the following statements is true?

• A)Holding more assets than liabilities in a given currency is referred to as a net short position.
• B)Holding more assets than liabilities in a given currency is referred to as a net long position.
• C)Holding more assets than liabilities in a given currency is referred to as a gross short position.
• D)Holding more assets than liabilities in a given currency is referred to as a gross long position.

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Definitions:

Abnormal Return

The difference between the actual return of a security and the expected return based on risk and market performance.

Fundamental Analysts

Professionals who evaluate securities by measuring the intrinsic value of a stock, company, or market, based on financial and economic factors.

Dividend Prospects

The potential for future dividend payments from investments, often assessed to evaluate the attractiveness of stocks.

Future Interest Rates

Expected rates of interest in the future, affecting everything from loans to investments.