Eddie Gaedel is an inveterate short seller. Is it true that Eddie's potential losses are infinite? Why?

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Eddie Gaedel is an inveterate short seller. Is it true that Eddie's potential losses are infinite? Why? Conversely, is it true that the maximum return that Eddie can earn on his investment is 100%? Why?

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:44 AM

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Eddie Gaedel is an inveterate short seller. Is it true that Eddie's potential losses are infinite? Why?

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The first statement is true The upside potential of any com...View the full answer

Fundamentals of Investments

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