Series 7 - General Securities Representative Exam

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One of your more conservative clients feels that the overall stock market is going to go down. Which one of the following would be appropriate for this client?

A Hedge Fund
A
An Inverse Broad Market ETF
B
Selling Naked Calls on the S&P 500
C
Buying Puts on the S&P 500
D
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Explanations

An inverse broad market ETF is the best choice. Selling calls or buying puts MIGHT work, but given the risk of options trading, it would not be appropriate for a conservative client

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