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jene277 jene277
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Assume an investor thinks the stock market is about to undergo a sharp retreat. Under these conditions, the investor's best course of action would be to

▸ buy stock-index futures contracts.

▸ short sell stock-index futures contracts.

▸ use single stock futures to sit out the market.

▸ use a long hedge against the investor's existing positions.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
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Aquarius1Aquarius1
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