Which of the Following Is Not Correct with Respect to Derivative

question 17

Multiple Choice

Which of the following is not correct with respect to derivative securities?

• A) They are among the riskiest of securities in the financial securities markets.
• B) They can be used for hedging purposes.
• C) Examples of derivatives include futures, options and swaps.
• D) All of these are correct statements about derivatives.

---

Definitions:

Positive Slope

An upward trend in a line graph indicating an increase in one variable as another variable increases.

Xy Axis

The two perpendicular lines in a cartesian coordinate system that define the horizontal and vertical dimensions for plotting points in a plane.

Positive Correlation

A statistical relationship where two variables move in tandem; as one variable increases, the other does as well.

Bivariate

Involving or dependent on two variables, often used in statistical analyses to examine the relationship between two sets of data.