Series 7 - General Securities Representative Exam
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Which ETF may be appropriate for an investor that wants to hedge a long large cap stock portfolio?
2x Long SPX ETF
A
Inverse RUT ETF
B
Inverse SPX ETF
C
2X Long RUT ETF
D
Explanations
The inverse SPX ETF aims to provide returns when Large Cap S&P 500 stocks fall. This is the appropriate hedge. The inverse RUT ETF follows small cap stocks and the other 2 are double leveraged long funds