Jennifer Expects the Price of a Stock to Decrease Over

question 38

Multiple Choice

Jennifer expects the price of a stock to decrease over the next month. Which one of the following strategies would allow Jennifer to earn a profit if the expected decrease actually occurs?

• A) Take a long position in the stock today.
• B) Sell the stock short today.
• C) Buy the stock on margin today.
• D) Take a long position in the stock one month from today.

---

Definitions:

Obsessive-Compulsive Disorder

A chronic anxiety disorder characterized by uncontrollable, recurring thoughts (obsessions) and behaviors (compulsions) that the individual feels the urge to repeat continuously.

Glycogen

A multibranched polysaccharide of glucose that serves as a form of energy storage in humans, animals, fungi, and bacteria.

Reductionism

The approach of analyzing complex phenomena by breaking them down into their simpler components.

Integrative Perspective

An approach that combines various theoretical orientations or methodologies to provide a more comprehensive understanding or solution.