Which of the Following Statements Is False

question 52

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.

---

Definitions:

Aversive Conditioning

A technique for altering behavior that utilizes negative stimuli to deter unwanted actions.

Light Exposure Therapy

A treatment method that involves exposing individuals to artificial light to treat seasonal affective disorder and other conditions.

Transference

In psychoanalysis, the projection of feelings, desires, or expectations originally associated with one person onto another, especially the therapist.

Virtual Reality Exposure

A psychological treatment that uses virtual reality technology to expose patients to their fears or traumatic memories in a controlled environment.