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

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Definitions:

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and strong economy.

Improvement

The process of making something better or more effective through changes, upgrades, or enhancements.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of innovations.

Shift

In economics, a change in the position of a demand or supply curve on a graph, indicating a change in the quantity demanded or supplied at every price.