Which of the Following Is a Problem with Duration Hedges

question 30

Multiple Choice

Which of the following is a problem with duration hedges?

• A) It is not accurate with large changes in interest rates.
• B) The hedge is instantaneous.
• C) The position is only immunised against uniform shifts in the yield curve.
• D) All of the above.

Understand the concept and measurement of inflation.

Recognize historical economic trends and conditions during specific decades.

Identify different types of unemployment and their characteristics.

Comprehend the impact of significant economic events, such as OPEC's oil price changes.