The Primary Use of Stock Index Futures by the Portfolio

question 41

Multiple Choice

The primary use of stock index futures by the portfolio manager is:

• A)to offset the loss on the portfolio in a declining market.
• B)to profit from major market movements.
• C)to increase the profit potential on the portfolio.
• D)All of the above

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Definitions:

Dizygotic

Referring to twins that are formed from two separate eggs fertilized by two different sperm cells, resulting in genetically distinct siblings.

Twins Produced

The result of a pregnancy that yields two offspring at the same birth, either identical or fraternal.

Double Helix

The structure formed by double-stranded molecules of nucleic acids, such as DNA, characterized by a spiral shape.

Down Syndrome

A genetic disorder caused by the presence of an extra chromosome 21, characterized by physical growth delays, characteristic facial features, and intellectual disability.