41、The most appropriate reason for an investor to sell a security short is the investor's belief that, in the near future:

A. interest rates will decline.

B. the security's price will decline.

C. the earnings growth rate for the security will increase.

D. the required rate of return on the security will decline.

[此贴子已经被作者于2008-11-7 13:21:08编辑过]

41、The most appropriate reason for an investor to sell a security short is the investor's belief that, in the near future:

A. interest rates will decline.

B. the security's price will decline.

C. the earnings growth rate for the security will increase.

D. the required rate of return on the security will decline.

  
Correct answer = B

"Organization and Functioning of Securities Markets," Frank K. Reilly and Keith C. Brown
2008 Modular Level I, Vol. 5, pp. 25-26
Study Session 13-52-f
describe the process of selling a stock short and discuss an investor's likely motivation for selling short
A short sale is the sale of borrowed stock with the intention of buying the stock back later at a lower price.