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In a market with high volatility and uncertainty that deters participants from trading, which statement do you think is correct? Select one: O The Authorised
In a market with high volatility and uncertainty that deters participants from trading, which statement do you think is correct? Select one: O The Authorised Participants now have a harder time to track the index. O The high volatility of the underlying assets does not affect the index ETF since the index captures the systemic risk. O The high volatility of the underlying asset does not imply higher risk in the economy, therefore the demand for stocks ETFs is not affected. O The Authorised Participants now have easier time to find securities in the market. In the ETF market, all investors can exchange the ETF shares against the underlying securities. Select one: O True if NAV is computed properly O True, all investors can create/redeem shares O False, only the Authorised participants can create/redeem shares Please make the correct statement: The argument that ETFs might exacerbate the volatility of assets in markets ... Select one: O Only applies in a bearish market applies in any market situation (bullish or bearish market) O Only applies in a bullish market Hedge Funds demand ETF for Select one: O To obtain negative returns O To obtain zero returns O To hedge market risk
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