Stock-Index Futures Can Be Used to Hedge Against Which of the Following

question 69

Multiple Choice

Stock-index futures can be used to hedge against which of the following types of risks?

• A) Diversifiable risk
• B) Systematic risk
• C) Unsystematic risk
• D) Company specific risk

---

Definitions:

PDF File Format

Portable Document Format, a file format created by Adobe that preserves document formatting and is widely used for documents distribution.

Digital Formats

The encoding of data, images, sound, and video in a binary format for use and storage on digital devices.

JPEG

A commonly used method of lossy compression for digital images, particularly for those images produced by digital photography.

MPEG

A set of standards for encoding audio and video that stands for Moving Picture Experts Group, widely used for digital television and streaming media.