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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Definitions:

Near Field Communications

A set of communication protocols that enable two electronic devices, one of which is often a portable device such as a smartphone, to establish communication by bringing them within a few centimeters of each other.

Showrooming

The practice of examining merchandise in a traditional brick-and-mortar retail store without purchasing it, then shopping online to buy the same item at a lower price.

Customer Churn

The rate at which customers stop doing business with an entity, often used to gauge a company's ability to retain its customers over time.

High-End CRM

Customer Relationship Management systems that offer advanced features and functionalities targeted at enterprises requiring complex customer interaction tools and data analytics.