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Basic Question 2 of 16

The potential gains in a long position generally are ______ and the potential losses are ______.

A. unlimited; no more than the value of the securities
B. no more than the value of the securities; no more than the value of the securities
C. no more than the value of the securities; unlimited

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Craig Baugh

Craig Baugh

Learning Outcome Statements

compare positions an investor can take in an asset

calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call

CFA® 2025 Level I Curriculum, Volume 3, Module 1.