1. An investor anticipates she will have funds to invest in the T-Bill market. If she hedges by buying futures contracts and rates decline, which of the following is true?

1. The investor will profit on the futures contract.
2. The investor will profit in the cash market.
3. The investor will have locked in a minimum 10% return.
4. The investor will lose in the cash market.
5. Both a. and d. are true.