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 call a short position.

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Definitions:

Direct Material

Raw materials that are directly involved in the production process of a product and can be easily traced to it.

Steel

An alloy of iron and carbon (and possibly other elements) that is hard, strong, and used as a structural and fabrication material.

Lumber

Wood that has been processed into beams and planks, a stage in the process of wood production.

Period Costs

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative costs, and are expensed in the period they are incurred.