By Hedging a Portfolio,a Bank Manager

question 8

Multiple Choice

By hedging a portfolio,a bank manager

• A)reduces interest-rate risk.
• B)increases reinvestment risk.
• C)increases exchange-rate risk.
• D)increases the probability of gains.

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Definitions:

Clarifies

The act of making a statement or situation less confused and more understandable, often used in communication to ensure mutual understanding.

Empathy Skills

Empathy skills involve the ability to understand and share the feelings of another, fostering deeper connections and more effective communication.

Problem-solving

The process of identifying a challenge or issue, analyzing the problem, and developing strategies to address it effectively.

Utilizing

The act of making use of resources or skills effectively for a specific purpose.