The Smithsonian agreement established a fixed exchange rate system

Which of the following statements is FALSE?

A) Margin investing is a risky investment strategy. B) Because our return on the risk-free investments is fixed and does not move with (or against) our portfolio, the correlation between the risk-free investment and the portfolio is always equal to one. C) Short selling the risk free investment is equivalent to borrowing money at the risk-free interest rate through a standard loan. D) Margin investing can provide higher expected returns than investing in the efficient portfolio using only the funds we have available.

Which corporation is eligible to make the S election?

a. Non-U.S. corporation. b. Limited liability company. c. Insurance company. d. U.S. bank. e. None of the above can select S status.