Building a zero-investment portfolio will always involve ________.
A) an unknown mixture of short and long positions
B) only short positions
C) only long positions
D) equal investments in a short and a long position

Question

Quizplus · Accepted Answer

A zero-investment portfolio involves taking equal but opposite positions in two or more securities, meaning the money received from the short positions is used to fund the long positions, resulting in a net investment of zero.

Building a Zero-Investment Portfolio Will Always Involve ________