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If the Futures Price Is ________ the Theoretical Futures Price

Question 27

Multiple Choice

If the futures price is ________ the theoretical futures price (that is, the futures contracts are cheap) , the index fund manager can ________ the indexed portfolio's return by buying the futures and buying the Treasury bills.


A) less than; enhance
B) greater than; enhance
C) greater than; maintain
D) less than; worsen

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