Multiple Choice
Which of the following statements about hedging a stock portfolio with stock index futures is NOT ?
A) Futures contracts magnify gains (or losses) on the stock portfolio
B) In a declining market,futures contracts help offset losses on the portfolio
C) A risk-taker would probably not hedge the entire portfolio with stock index futures
D) All of the are true
Correct Answer:
Verified
Correct Answer:
Verified
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