CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

The potential gains in a short 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
Explanation: In contrast, the potential gains in a long position are unbounded whereas the potential losses are limited to no more than 100 percent.

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