Which of the following is true?

1. An investor can short sell an ETF.

2. A retail investor cannot purchase or redeem shares directly from a mutual fund.

3. When trading an ETF, an investor needs to consider the bid-ask spread.

Multiple Choice

Statements 1, 2, and 3 are true.

Statements 1 and 3 are true. Statement 2 is false.

Statement 1 is true. Statements 2 and 3 are false.

Statements 1, 2, and 3 are false.

Statement 3 is true. Statements 1 and 2 are false.