Housing Futures Contracts Allow Investors to Speculate on Changes in Home

question 8

True/False

Housing futures contracts allow investors to speculate on changes in home prices without actually owning a home.

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Definitions:

Target Structure

An ideal capital structure a company aims to achieve, usually a mix of debt and equity that minimizes cost of capital while maximizing valuation.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted and includes all types of capital such as debt and equity.

Capital Structure

The mix of debt and equity financing used by a firm to fund its operations and growth.

Industry Specific

Tailored or particularly relevant to a certain sector or type of business.