Make sure you understand duration. Because of the leverage, futures contacts can be used to extend or reduce the duration of a portfolio. If you wanted to reduce duration, what futures strategy would you employ? If you expected the Fed to drop rates soon, would you extend or reduce the duration of your fixed income portfolio and why? What is the relationship between duration and interest rate (market) risk? Why are growth stocks often regarded as having long durations? Which stocks have short durations? What is the yield to maturity for a bond or