Financial Futures Are Available to Protect Against All of the Following

question 21

Multiple Choice

Financial futures are available to protect against all of the following except:

• A)Interest-rate risk.
• B)Level of equity prices.
• C)Currency swap risk.
• D)Exchange-rate risk.

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Definitions:

Empirical Rule

A statistical rule stating that for a normal distribution, about 68% of data falls within one standard deviation of the mean, 95% within two, and 99.7% within three standard deviations.

Mound-Shaped

Refers to a symmetrical, bell-shaped curve often associated with the normal distribution in statistics.

Standard Deviation

An indicator that quantifies the spread or variability among a collection of numbers, showing the extent to which these numbers differ from their average.

Mean

The mathematical mean of a collection of numbers, obtained by summing them up and then dividing by the total count of the numbers.