Which of the Following Is a Likely Reason for a Portfolio

question 96

Multiple Choice

Which of the following is a likely reason for a portfolio manager to sell a stock index future short?

• A) He believes the market will rise.
• B) He wants to lock in current prices.
• C) He wants to reduce stock market risk.
• D) Both B and C are correct.

---

Definitions:

Conflicts

Disagreements or clashes between opposing parties, ideas, or interests, which can occur in various contexts such as personal, social, or professional.

Extrinsic Motivation

Involves performing an action or behavior in order to receive external rewards or avoid punishments.

Intrinsic Motivation

The drive to engage in activities for their own sake and for the personal rewards they provide, rather than for some external reward.

Source of Energy

Any physical or chemical substance that can be converted to provide power, such as sunlight, fossil fuels, or nuclear power.