Stock-index futures can be used to hedge against which of the following types of risks?
A) Diversifiable risk
B) Market risk
C) Unsystematic risk
D) Company specific risk

Name: Stock-index futures can be used to hedge against which of the following types of risks? A) Diversifiable risk B) Market risk C) Unsystematic risk D) Company specific risk
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Question

Quizplus · Accepted Answer

Stock-index futures are used to hedge against market risk, which is the risk of losses due to overall market movements.

Stock-Index Futures Can Be Used to Hedge Against Which of the Following