Which of the Below Statements Is FALSE

question 21

Multiple Choice

Which of the below statements is FALSE?

• A) The importance of being able to measure the sensitivity of an individual asset, a portfolio of assets, and a liability cannot be overemphasized.
• B) To control interest rate risk, it is necessary to be able to measure it.
• C) An investor with a portfolio of assets wants to be able to measure her exposure to interest rate changes in order to assess whether or not the exposure is acceptable. If it is not, she can alter the exposure.
• D) When a duration is calculated under the assumption that the cash flows do not change when interest rates change, the resulting duration is called effective duration.

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Definitions:

Diabetes

Diabetes is a chronic medical condition where the body cannot properly regulate blood glucose levels due to inadequate insulin production or action.

Medical Record

A comprehensive and systematic documentation of a patient's medical history and care over time, including diagnoses, treatments, and outcomes.

ICD-9-CM

The International Classification of Diseases, Ninth Revision, Clinical Modification; a system used in the United States to code and classify morbidity data from inpatient and outpatient records.

Classification

The process of organizing or categorizing objects, information, or phenomena into groups based on shared characteristics or criteria.