To preserve capital in a declining share market, a portfolio manager should: a. Shift funds from...

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To preserve capital in a declining share market, a portfoliomanager should: a. Shift funds from cash markets into sharemarkets. b. Buy call options on the share index. c. Sell putoptions on the share index. d. Buy share index futures. e. Sellshare index futures.
Which of the following is a FALSE statement? a. The S&P500is a popular benchmark for evaluating portfolio performance in theUS. b. Dollar-weighted returns are appropriate for portfoliomanagers. c. Superior performance can result from superior skill inmarket timing. d. The higher the R2, the less the diversifiablerisk. e. An average return of 1% over a period is not necessarilypoor performance.
Modified duration is higher than Macaulay’s duration except for:a. zero-coupon bonds. b. discount bonds. c. premium bonds. d. bondsselling at par value. e. none of the above.
Which of the following is INCORRECT? a. Common stock representsownership interest of corporations. b. Money market securities arehighly liquid, low-risk short-term instruments. c. The buyer of anoption has limited liability. d. Debt rated BBB and below isregarded as speculative. e. A common share is a capital marketsecurity.

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To preserve capital in a declining share market a portfolio manager should The correct answer is option e Sell share index futures Short index future will lead to gains See Answer

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To preserve capital in a declining share market, a portfoliomanager should: a. Shift funds from cash markets into sharemarkets. b. Buy call options on the share index. c. Sell putoptions on the share index. d. Buy share index futures. e. Sellshare index futures.Which of the following is a FALSE statement? a. The S&P500is a popular benchmark for evaluating portfolio performance in theUS. b. Dollar-weighted returns are appropriate for portfoliomanagers. c. Superior performance can result from superior skill inmarket timing. d. The higher the R2, the less the diversifiablerisk. e. An average return of 1% over a period is not necessarilypoor performance.Modified duration is higher than Macaulay’s duration except for:a. zero-coupon bonds. b. discount bonds. c. premium bonds. d. bondsselling at par value. e. none of the above.Which of the following is INCORRECT? a. Common stock representsownership interest of corporations. b. Money market securities arehighly liquid, low-risk short-term instruments. c. The buyer of anoption has limited liability. d. Debt rated BBB and below isregarded as speculative. e. A common share is a capital marketsecurity.