22-101 How Can the Portfolio Manager Use Futures Markets to Protect

question 19

Multiple Choice

22-101 How can the portfolio manager use futures markets to protect against the risk exposure of rising interest rates?

• A)Buy interest rate futures.
• B)Sell currency futures.
• C)Buy currency futures.
• D)Sell interest rate futures.
• E)Sell stock market index futures.

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Definitions:

Innate Tendency

A natural inclination or predisposition towards certain behaviors or reactions, often considered to be genetically programmed.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, including thoughts, feelings, and behaviors.

Emotions

Complex psychological states involving three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.