A portfolio manager with $100 million in Treasury securities can reduce interest-rate risk by _____ A)...

A portfolio manager with $100 million in Treasury securities can reduce interest-rate risk by _____
A) Selling financial futures B) Going long on financial futures C) Buying financial futures D) Doing nothing

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Expert Solution

As the risk is of fall in price of Treasury securities, we can mitigate/hedge that risk by shorting/selling financial futures

A) Selling financial futures

jeff jeffy answered 1 year ago

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