Which of the Following Statements About Portfolio Insurance Is False

question 7

Multiple Choice

Which of the following statements about portfolio insurance is false?

• A) There are several methods of insuring a portfolio.
• B) It seeks to provide a minimum return while offering the opportunity to participate in rising prices.
• C) Futures are typically not used to hedge stock portfolios.
• D) Puts and calls typically are not used to insure portfolios.

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Definitions:

Ethnic Groups

Social groups that share a common national or cultural tradition.

Socioeconomic Groups

Categories of people sharing similar levels of wealth, income, education, and occupational status in society.

Zoophilia

A condition of having a sexual preference for non-human animals.

Sexual Contact

Physical encounters or activities that involve the touching or interaction of sexual organs or areas.