The Primary Use of Stock Index Futures by the Portfolio

question 1

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

---

Definitions:

Medicaid

A joint federal and state program that helps with medical costs for people with limited income and resources, providing health coverage to eligible individuals and families.

Life Expectancy

The typical duration one is anticipated to survive.

Minority Groups

Demographic groups that are smaller in numbers within a larger population and may face disparities in economic, political, or social opportunities.

Chronic Illness

a long-lasting health condition that may not have a cure, impacting the individual's lifestyle and possibly requiring ongoing treatment.