The Types of Work That Are Appropriate to Include in a Portfolio

question 8

Multiple Choice

The types of work that are appropriate to include in a portfolio should be

• A)completely open to allow for student creativity.
• B)determined solely by the student.
• C)specified in the portfolio guidelines.
• D)the same for all types of portfolios.

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Definitions:

Forward Contract

A bespoke arrangement between two parties for acquiring or disposing of an asset at a designated price on an upcoming date.

Hedge

An investment made to reduce the risk of adverse price movements in an asset.

Speculative Forward Contract

A financial derivative used to speculate on the future price of an asset, involving an agreement to buy or sell the asset at a future date for a price determined today.

Fair Value Hedge

A risk management technique that uses financial instruments to mitigate the risk associated with changes in the fair value of an asset or liability.