Which of the Following Is NOT Generally Correct About fiNancial

question 91

Multiple Choice

Which of the following is NOT generally correct about financial engineering?

• A) Financial engineering is frequently used to hedge risk.
• B) Financial engineering uses available financial instruments to create new securities.
• C) The investments created by financial engineers are often riskier than the underlying securities.
• D) In a world where prices are stable, there would be little demand for financial engineering.
• E) Financial engineering is not a growth industry because the world is becoming less risky.

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Definitions:

Psychological Distress

Significant mental suffering or strain typically resulting from challenging circumstances or mental health conditions.

Gestalt Groups

A concept in psychology focusing on how people integrate pieces of information into meaningful wholes, often applied to group dynamics and perception.

Cognitive-behavioral Groups

Therapeutic groups that utilize cognitive-behavioral techniques to address dysfunctional emotions, behaviors, and cognitions through a goal-oriented process.

Therapeutic Factors

Therapeutic factors are elements within therapy that contribute to the healing process, such as empathy, understanding, and support from the therapist, as well as group cohesion in group therapy.