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Which of the Following Statements About Portfolio Insurance Is False

Question 1

Multiple Choice

Which of the following statements about portfolio insurance is false?


A) There are several methods of insuring a portfolio.
B) It seeks to provide a minimum return while offering the opportunity to participate in rising prices.
C) Futures are typically not used to hedge stock portfolios.
D) Puts and calls typically are not used to insure portfolios.

Correct Answer:

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