Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)Interest rate swaps are an alternative means of modifying the firm's interest rate risk exposure without buying or selling assets.
• B)A portfolio with a negative duration is called a duration-neutral portfolio or an immunized portfolio,which means that for small interest rate fluctuations,the value of equity should remain unchanged.
• C)Maintaining a duration-neutral portfolio will require constant adjustment as interest rates change.
• D)A duration-neutral portfolio is only protected against interest rate changes that affect all yields identically.

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A Central American country known for its high biodiversity, progressive environmental policies, and high literacy and health care standards.

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