Is it possible for an investor to allocate more than 100% of their assets to the stock market?
A) No, this is not theoretically plausible.
B) No, federal law prohibits this kind of investment.
C) Yes, investors can borrow money to buy stocks on margin.
D) none of the above

Question

Quizplus · Accepted Answer

Investors can use margin accounts offered by their brokerage firms to borrow funds to purchase stocks, which would allow them to allocate more than 100% of their assets to the stock market. However, this strategy comes with higher risks and potential losses if stock prices decline.

Is It Possible for an Investor to Allocate More Than