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.
Correct Answer:
Verified
Correct Answer:
Verified
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