SIE Understanding Products and Their Risks Practice Question 92
Question: 92
Which of the following assists the investor in obtaining a return that is opposite of that of a target index?
Correct Answer: D
Explanation:
D: Choice D is correct, as inverse ETFs assist in providing a positive return when the target index has a negative return. Choices A, B, and C are incorrect as they are entities, and therefore are not subject to inverse arrangements, except by holding inverse ETFs, inverse options, or other inverse investments in their portfolios.
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