You Own a Portfolio That Is Valued at $11,190,000 and Has

question 99

Multiple Choice

You own a portfolio that is valued at $11,190,000 and has a beta of 1.43. You would like to create a riskless portfolio by hedging using S&P 500 futures contracts. The contract size is $250 times the index level. How many futures contracts do you need to acquire if the current S&P 500 index is 1730?

• A)short 28 contracts
• B)short 37 contracts
• C)long 28 contracts
• D)long 37 contracts
• E)short 43 contracts

Understand the mechanism of higher-order conditioning and its outcomes.

Recognize different conditioning techniques used to modify behaviors, including aversion therapy and habituation.

Differentiate between types of conditioning (classical, operant) and associated phenomena (habituation, sensitization).

Identify and explain the basic principles of classical conditioning, including the roles of the conditioned stimulus (CS), unconditioned stimulus (UCS), conditioned response (CR), and unconditioned response (UCR).

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Definitions:

Domain Archaea

One of the three domains of life; contains prokaryotic cells that often live in extreme habitats and have unique genetic, biochemical, and physiological characteristics; its members are sometimes referred to as archaea.

Adapted

Modified to suit a new or specific environment or condition, often referring to organisms in biology.

Inductive Reasoning

Using specific observations and the process of logic and reasoning to arrive at general scientific principles.

Hypothesis

A hypothesis is a proposed explanation for a phenomenon, made as a starting point for further investigation, validation, or refutation through experimentation and observation.