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:

MyPlate

A visual guide created by the U.S. Department of Agriculture to help Americans understand and follow healthy eating habits, showing the five food groups as sections on a plate.

2,000-Calorie

A reference dietary intake level often used in nutrition labeling, suggesting the estimated amount of calories a person should consume daily for maintaining weight.

Weight Loss

The reduction of total body mass due to voluntary (e.g., exercise, diet) or involuntary (e.g., illness) reasons.

1-2 Pounds

A reference to a recommended healthy rate of weight loss per week to ensure sustainability and minimize health risks.