Building a Zero-Investment Portfolio Will Always Involve ________

question 54

Multiple Choice

Building a zero-investment portfolio will always involve ________.

• A) an unknown mixture of short and long positions
• B) only short positions
• C) only long positions
• D) equal investments in a short and a long position

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them a right to a portion of the company's profits and assets.

Limited Liability

A legal structure that restricts the amount of money that owners or shareholders can lose in case the company fails, limiting their loss to the amount they have invested in the company.

Direct Management

The process of overseeing and directly controlling operations or tasks without intermediary levels of command.

Charter

A legal document that establishes a corporation or other organization, outlining its purpose, activities, and rights.