Stock Index Futures Represent an Efficient Approach To

question 50

Multiple Choice

Stock index futures represent an efficient approach to:

• A)only taking on unsystematic risk.
• B)only taking on systematic risk.
• C)taking on zero risk, because the index is fully diversified.
• D)taking on lots of risk, due to the fact that the indexes are usually composed of lots of stocks, not just a few.

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Definitions:

Causal Factor

An element or condition that directly influences the occurrence of an event or the outcome of a process.

Bathroom Floor

The surface or part of a bathroom upon which one stands, often made of tile, linoleum, or other water-resistant material.

Leak

The accidental escape of a fluid or gas through a hole or crack, or the disclosure of confidential information.

Plumbing

The system of pipes, drains, fittings, valves, and fixtures installed for the distribution of water for drinking, heating, and washing, and the removal of waterborne wastes.