By Hedging a Portfolio,a Bank Manager

question 8

Multiple Choice

By hedging a portfolio,a bank manager

• A)reduces interest-rate risk.
• B)increases reinvestment risk.
• C)increases exchange-rate risk.
• D)increases the probability of gains.

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Definitions:

Formal Writing Style

A style of writing characterized by a professional tone, proper grammar, and a clear structure, typically used in academic and business contexts.

Monotony

The uniformity or lack of variation that can lead to boredom or a lack of interest.

Humour

A quality that makes something laughable or amusing; often used to lighten the mood or enhance communication.

Monotonous Writing

Writing that is dull and repetitive, lacking in variety and interest.