Assume a Portfolio Manager Created a Short Interest Rate Hedge

question 57

Multiple Choice

Assume a portfolio manager created a short interest rate hedge for his/her portfolio. Given this hedge, the manager is

• A) essentially eliminating both the downside risk and the upside potential.
• B) eliminating the downside risk without hampering the upside potential.
• C) partially diminishing the downside risk without impairing the upside potential.
• D) eliminating the downside risk and increasing the upside potential.

---

Definitions:

Diversity Competency

The ability to understand, respect, and value diversity, thus improving interactions and relationships in a multicultural environment.

Promote Diversity

Encouraging the inclusion and representation of different demographic backgrounds, experiences, and perspectives in an organization or community.

Inclusion Index

A measure or assessment tool used to evaluate the level of inclusivity and diversity within an organization.

Diversity Competency

The ability to interact effectively with individuals of various racial, ethnic, cultural, or socio-economic backgrounds.