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Logan is currently holding 205 shares of Apple, Inc. (AAPL) and 105 shares of PayPal (PYPL) in his secret portfolio. For his stock trading project,
Logan is currently holding 205 shares of Apple, Inc. (AAPL) and 105 shares of PayPal (PYPL) in his secret portfolio. For his stock trading project, he is planning to short the entire 105 shares of PayPal (PYPL). As a result of his action, Logans portfolio would
A. reduce the free cash flows.
B. increase the volatility of returns.
C. reduce the probability of high returns.
D. increase the expected rate of return.
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