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Which statements regarding margin buying and short selling are incorrect?

When brokers increase the initial margin, investors would need to put in less cash to open th

II$.$ When brokers increase the initial margin, investors' leverage effect would be smaller.

III. When brokers increase the maintenance margin, investors would receive margin calls late$-$

IV$.$ Short$-$selling investors have the potential to experience unlimited loss.

V$.$ The leverage effect in margin buying and short selling could multiply the return and minim

Select $3$ correct answer$($s$)$

$1$

$$ II

III

IV

V

Question $2(6$ points$)$

Choose the correct statements considering "classical portfolio theory" and

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