Robo-Advisors

question 48

Multiple Choice

Robo-advisors

• A)Online investment services that require customers to have a large portfolio in order to use this service.
• B)Are online investment services that at this time are more expensive than human advisors.
• C)Are human financial advisors that help customers online.
• D)Complete online investment services that use algorithms to complete the tasks.
• E)Allow human financial advisors to be more cost effective with customers that have smaller accounts.

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Definitions:

Contract Size

The deliverable quantity of commodities or financial instruments specified in a contract that an investor agrees to buy or sell.

Hedge Strategy

Investment strategies designed to reduce the potential for loss in an investment portfolio by making counterbalancing investments or using financial instruments like options and futures.

Short Corn Futures

A financial contract obligating the seller to deliver corn at a future date, typically used to hedge or speculate on falling corn prices.

Shorting Index Futures

The practice of selling index futures contracts with the expectation that the underlying index will decline in value, aiming to profit from the decrease.