Who Would Be Most Likely to Buy a Long Stock

question 30

Multiple Choice

Who would be most likely to buy a long stock index future?

• A)a mutual fund manager who believes the market will rise
• B)a mutual fund manager who believes the market will fall
• C)a mutual fund manager who believes the market will be stable
• D)none of the above would be likely to purchase a futures contract

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Definitions:

Precognition

The alleged ability to see or know about events before they happen.

Motivations

Motivations are the driving forces behind human actions, desires, and needs.

Perception

The method through which people arrange and understand their sensory observations to assign significance to their surroundings.

Emotion

A complex psychological state that involves a subjective experience, physiological response, and behavioral or expressive response.