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Adam Is in a Bad Mood After Receiving a Course

question 43

Multiple Choice

Adam is in a bad mood after receiving a course grade that is much lower than he expected.Aaron is in a good mood after receiving a course grade that is much higher than he expected.Research suggests that Adam is likely to ________ the duration of his bad mood and Aaron is likely to ________ the duration of his good mood.


Definitions:

Maintenance-Margin

The minimum amount of equity that must be maintained in a margin account to continue holding positions, preventing a margin call.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses.

Margin Deposit

A margin deposit is an initial sum deposited to cover potential losses when borrowing capital for investing, typically in a margin account for trading securities.

Open Interest

The number of futures contracts outstanding.

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