When changing the asset allocation in a portfolio, it can often be cheaper to do it synthetically through futures, rather than say, sell actual stocks or bonds. Question 1 Not yet answered Points out of 100 P Flag question Select one: O True O False Asset Allocation in this context means what? Question 2 Not yet answered Points out of 1.00 P Flag question Select one: O a. Buying more small-cap stocks because they have better long term returns. o b. Temporarily altering the mix of stocks versus bonds in a portfolio through the use of derivatives C. Making sure we always stay with the gold standard, 60/40 portfolio. d. Stock picking so that we've got the best performing equity portfolio that we can get. Question 3 T have a $100 million dollar 60/40 portfolio, but I want to reduce my equity risk down so that it's a $100 million 50/50 portfolio. What should I do if I want to do this with futures contracts? Not yet answered Points out of 100 P Flag question Select one: o a. Buy bond futures b. Buy bond futures and sell equity futures C.Sell bond futures and sell equity futures d. Sell bond futures and buy equity futures Question 4 Not yet answered Points out of 1.00 P Flag question If I'm going to use futures contracts to temporarily adjust the asset allocation in my investment portfolio, I'm still going to always have to buy or sell shares and bonds in that underlying investment portfolio. Using futures contracts won't get away from that. Select one: True O False