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.

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Definitions:

Blank Slate

The theory that individuals are born without built-in mental content and that all knowledge comes from experience or perception.

Biological Functioning

Refers to the physical and biochemical processes that occur within living organisms to maintain life.

Biological Influences

Factors that affect an organism, individuals, or species from a biological standpoint, including genetics, brain chemistry, and physical health.

Psychoanalysis

The system of psychotherapy developed by Freud that focuses on uncovering the unconscious material responsible for a patient’s disorder.