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A Private Investment Firm That Deals Exclusively in Derivative Investment

Question 12

Multiple Choice

A private investment firm that deals exclusively in derivative investment products is concerned its market activities may become regulated.What measures should the institution take to begin to address its concerns?


A) establish an adequately funded cash reserve
B) manage legal risk with a plan to prevent loss
C) appoint a junior trader to monitor and assess possibility of loss
D) prepare a risk aversion policy manual

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