A Mutual Fund Is Engaged in the Short Term and Temporary

question 2

Multiple Choice

A mutual fund is engaged in the short term and temporary purchase of index futures,for purposes of minimizing its cash exposures.Which "use" most closely explains their actions?

• A) Risk management
• B) Speculation
• C) Reduced transaction costs
• D) Regulatory arbitrage

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Definitions:

Society for Research

Society for Research is a general term that could refer to any organization or association dedicated to conducting and promoting scientific research in a specific field.

Child Development

The biological, psychological, and emotional changes that occur in human beings between birth and the end of adolescence.

American Psychological Association

A professional organization representing psychologists in the United States, dedicated to advancing psychology as a science and profession.

Minnesota Multiphasic Personality Test-II

A widely used standardized psychometric test of adult personality and psychopathology.