Selling Short an Investment with a Low Expected Return and Using

question 12

Multiple Choice

Selling short an investment with a low expected return and using the proceeds to increase a position in an investment with a higher expected return results in a larger expected return than can be achieved by investing only in the investment with the high expected return.This is known as:

• A)passive trading.
• B)scalping.
• C)diversifying an investment.
• D)leveraging an investment.

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Definitions:

Selling Liquor

The act or business of distributing alcoholic beverages for consumption, regulated by various laws and licenses.

Criminal Liability

Legal responsibility for committing acts deemed offenses against society or the state, subject to legal penalties.

Underage Person

An Underage Person is an individual who has not reached the legal age of majority, thus holding certain restrictions in legal rights and responsibilities.

Social Organization

The ordered structure of relationships and social arrangements within a group or society, including the established patterns of interaction and social relations that govern behavior.