Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)Interest rate swaps are an alternative means of modifying the firm's interest rate risk exposure without buying or selling assets.
• B)A portfolio with a negative duration is called a duration-neutral portfolio or an immunized portfolio,which means that for small interest rate fluctuations,the value of equity should remain unchanged.
• C)Maintaining a duration-neutral portfolio will require constant adjustment as interest rates change.
• D)A duration-neutral portfolio is only protected against interest rate changes that affect all yields identically.

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Definitions:

Local Human Capital

The collective skills, knowledge, and experience possessed by an area's population, contributing to its economic productivity.

HR Professionals

Individuals who work in the human resources field, focusing on recruitment, management, and development of company personnel.

Business Decision Making

The process by which business leaders and managers choose among alternatives to achieve organizational goals efficiently and effectively.

Local Human Capital

The collective skills, knowledge, and abilities of individuals within a specific local area or community.