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:

Hominoids

A primate group that includes all apes and humans, characterized by higher intelligence and more complex social structures compared to other primates.

Hominids

A family of primates that includes humans and their fossil ancestors, characterized by bipedalism and large brains.

Comparative Differences

The identification and analysis of differences and similarities between two or more entities or variables, often used to understand their nature or to make decisions based on their characteristics.

New World Monkeys

Primates that are native to Central and South America, characterized by their flat noses and often prehensile tails.