Stock Index Futures Represent an Efficient Approach To

question 50

Multiple Choice

Stock index futures represent an efficient approach to:

• A)only taking on unsystematic risk.
• B)only taking on systematic risk.
• C)taking on zero risk, because the index is fully diversified.
• D)taking on lots of risk, due to the fact that the indexes are usually composed of lots of stocks, not just a few.

---

Definitions:

Performance Attainment

Performance attainment refers to achieving a level of competency or success in a particular task or goal, often through effort and skill.

Self-efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task.

Verbal Persuasion

A method of influencing someone's behavior, beliefs, or attitudes using words and communication.

Physiological Arousal

A physical state of alertness and activation, often a response to stimuli that involves changes in bodily functions.