Series 3: Exercise

Exercise

Fill in the blanks.

1. For stock index futures, the cost of carry is the financing cost associated with purchasing a futures contract, less any _____.

2. _____ is the risk that the value of any specific security within a portfolio will decline due to factors specific to the issuer of that security, such as a drop in sales or a decline in the company’s credit rating.

3. _____ is a ratio that measures the tendency of a security’s return