Question
132.How are derivatives used by investors? Select one: A.To limit long-term growth in the market B.To move stock to money markets C.To hedge against the
132.How are derivatives used by investors? Select one:
A.To limit long-term growth in the market
B.To move stock to money markets
C.To hedge against the risk of sudden loss
D.To create a bull market
E.To avoid using credit cards to cover short-term debt
133.Which of the following allows investors to transfer risk from a party that wants to decrease risk exposure to a party that is willing to increase risk exposure to pursue higher profits? Select one:
A.Currency market
B.Money market
C.Stock market
D.Bond market
E.Derivatives market
134.Asset allocation is performed to ________. Select one:
A.reduce the load that intermediaries charge
B.maximize the earning potential of an investment vehicle
C.maximize the returns from any one vehicle
D.maximize the earning potential of a portfolio
E.protect against significant declines in any one investment vehicle
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