In a Declining Market, Stock Index Futures Can Be Used

question 2

True/False

In a declining market, stock index futures can be used to hedge a stock portfolio to help offset losses in the portfolio.

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Definitions:

SAT scores

Scores resulting from the Scholastic Assessment Test, a standardized test widely used for college admissions in the United States.

Margin of error

The amount of error that can be tolerated in survey or poll results, often used in describing the accuracy of a confidence interval.

Electric usage

The amount of electrical energy consumed by a device, household, or establishment over a given time period.