Which of the Following Statements Is INCORRECT

question 1

Multiple Choice

Which of the following statements is INCORRECT?

• A) Futures markets got started in Chicago to help farmers manage price risk.
• B) Futures on agricultural commodities dominated futures trading in the early years because agriculture constituted a significant portion of the US economy.
• C) In nineteenth-century Chicago,metal futures could not overtake agricultural futures on corn and wheat because metal prices were fixed by the government.
• D) Early regulators of futures markets were associated with the US Department of Agriculture because agricultural futures were the most actively traded futures contracts.
• E) The modern futures contract developed through time as its structure evolved to reflect the economic needs of the market participants.

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Definitions:

Quarterly Return

The financial performance of an investment or asset over a three-month period, typically expressed as a percentage.

Investment

This refers to the allocation of resources, often financial, in assets or projects with an expectation of generating future returns.

Lower Partial Standard Deviation

A measure of the risk of negative asset returns, focusing only on the volatility of returns that fall below the average.

Extremely Negative Returns

Refers to significantly below-average returns on investments, often resulting in substantial losses.