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.

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Definitions:

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