When Investors Take a Short Position in One Asset to Invest

question 80

Multiple Choice

When investors take a short position in one asset to invest more in another asset,they are using:

• A) capital budgeting
• B) corporate leverage
• C) financial leverage
• D) none of the above

---

Definitions:

Liver

A large vital organ in vertebrates responsible for detoxification, protein synthesis, and the production of biochemicals necessary for digestion, among other functions.

Intestinal Villus

Small, finger-like projections that protrude from the inner lining of the small intestine, increasing its surface area for nutrient absorption.

Lacteal

Lymphatic vessel in the wall of the small intestine that carries chyle from the intestine and absorbs fat.

Blood Capillaries

Tiny blood vessels that form a network to distribute oxygen and nutrients to tissues while removing carbon dioxide and waste products.