Which of the Following Statements Is Incorrect

question 67

Multiple Choice

Which of the following statements is incorrect?

• A)Convexity is a desirable effect to a portfolio manager because it is easy to measure and price.
• B)All fixed-income assets exhibit convexity in their price-yield relationships.
• C)The greater is convexity, the more insurance a portfolio manager has against interest rate increases and the greater potential gain from rate decreases.
• D)The fact that the capital gain effect for rate decreases is greater than the capital loss effect for rate increases is caused by convexity in the yield-price relationship.

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Definitions:

Slave Insurrection

An act of rebellion or revolt by enslaved individuals seeking to gain freedom from bondage and oppression.

Harsh New Laws

Recent legislation that is particularly severe, strict, or oppressive in nature.

1712 and 1741

Reference years to notable events; notably, 1712 references the New York Slave Revolt of 1712, and 1741 may refer to the New York Conspiracy of 1741, both highlighting slave resistance.

Colony of Carolina

Colony of Carolina was one of the British colonies in North America, founded in the 17th century, which later split into North Carolina and South Carolina, playing significant roles in the economic and social development of the future United States, particularly in terms of colonial and antebellum slavery.