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Suppose You Are Currently in the Long Position of a Long-Term

question 6

Multiple Choice

Suppose you are currently in the long position of a long-term bond.In this case,to hedge against a capital loss,you would enter into a ________ contract to ________ a long-term bond in the future.


Definitions:

Expected Return

The anticipated amount of profit or loss an investment is projected to generate.

Equity Index

A statistical measure that represents the value of a set of stocks, showing changes in the overall performance of a stock market or a segment of the stock market.

Portfolio Manager

A professional responsible for making investment decisions and overseeing a portfolio of assets to achieve specific investment objectives.

Active Asset Allocation

An investment strategy that actively adjusts the mix of asset classes in a portfolio based on market conditions and investment goals.

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