Which of the Following Statements Are Incorrect

question 43

Multiple Choice

Which of the following statements are incorrect?

• A) Investing in a zero-coupon asset with a maturity equal to the desired investment horizon is one method of immunising against changes in interest rates.
• B) Investing in a zero-coupon asset with a maturity equal to the desired investment horizon removes interest rate risk from the investment management process.
• C) Buying a fixed-rate asset whose duration is exactly equal to the desired investment horizon immunises against interest
• D) Using a fixed-rate bond to immunisea desired investment horizon means that the reinvested coupon payments are not affected by changes in market interest rates.

---

Definitions:

Standard Parts

Components or elements used commonly in the assembly or construction of a variety of products or systems.

Word Processing

The creation, editing, formatting, and printing of documents using software on a computer, dedicated to managing text.

Meeting Minutes

A written record of the discussions, decisions, and actions taken during a meeting.

Expected Format

The predetermined or standard arrangement and presentation style for documents or data.