Question

In: Economics

A portfolio manager with $60 million in Canadian securities could reduce interest-rate risk by Select one:...

  1. A portfolio manager with $60 million in Canadian securities could reduce interest-rate risk by

Select one:

a. selling financial futures.

b. going long on financial futures.

c. buying financial futures.

d. all of these choices

Solutions

Expert Solution

d. All of these choices.

To reduce the risk the manager need to diversify the portfolio that would involve buying long term and short term investment options and creating a mix of various investments.


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