Which of the Following Is(are) Example(s) of Interest Rate Futures

question 50

Multiple Choice

Which of the following is(are) example(s) of interest rate futures contracts?

• A) Corporate bonds
• B) Treasury bonds
• C) Eurodollars
• D) Treasury bonds and Eurodollars
• E) Corporate bonds and Treasury bonds

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Definitions:

Optimal Portfolio

Optimal Portfolio is an investment portfolio that offers the highest expected return for a specific level of risk or the lowest risk for a given level of expected return.

Diversifiable Risk

A type of risk that can be reduced or mitigated through diversification or spreading investments across different assets to reduce exposure to any single risk.

Market Risk

The potential for financial loss due to fluctuations in market conditions, such as changes in stock prices, interest rates, or exchange rates.

Randomly Selected Stocks

Stocks chosen without any specific pattern, criteria, or bias, often used in sampling or experimental portfolios.