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If a Futures Contract Is More Volatile Than the Portfolio

question 75

Multiple Choice

If a futures contract is more volatile than the portfolio value, the amount of principal represented by the futures contracts to hedge the portfolio is ____ the market value of the securities to be hedged.


Definitions:

Guaranteeing Personal Freedoms

The act or legal measures designed to protect individuals’ rights and liberties against infringement or oppression.

Crawling

A form of locomotion achieved by moving on hands and knees or hands and feet, typically seen as a developmental milestone in infants.

Motor Activities

Physical actions involving movement and coordination of the muscles and limbs, important in the development of gross and fine motor skills.

Walking

A form of locomotion involving the coordinated movement of the legs to move an individual from one location to another.

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