An Individual with a Large Stock Portfolio Can Hedge the Position

question 9

Multiple Choice

An individual with a large stock portfolio can hedge the position by

• A) buying a stock index futures
• B) selling a stock index futures
• C) selling the stocks
• D) maintaining the position

---

Definitions:

Study Personality

The academic research of understanding differences in individual's characteristics, behaviors, emotions, and thought patterns.

Cattell

Raymond Cattell was a psychologist known for his psychometric research into personality, including the development of the 16 Personality Factor (16PF) questionnaire.

HEXACO Model

A personality model that expands upon the traditional Big Five traits by including a sixth dimension: Honesty-Humility, alongside Emotionality, eXtraversion, Agreeableness, Conscientiousness, and Openness to experience.

Personality Factors

Fundamental traits or dimensions that constitute an individual's personality, often identified through factor analysis in personality psychology.