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

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 2 years ago

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