Question: The risk - free rate is 5 % , inflation rate is 3 % , and market risk premium is 8 % . Which of

The risk-free rate is 5%, inflation rate is 3%, and market risk premium is 8%.
Which of the following statements on investment is LEAST likely to be correct?
Group of answer choices
Short selling is in general riskier and more costly than direct purchase.
Short selling helps investors exploit negative private information about a stock.
The higher the maintenance margin, the lower the risk of short selling.
In the financial market it is less likely to observe underpricing than overpricing.

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