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LOS d, (Part 1): Evaluate a company's or a portfolio's exposures to financial risk factors.
Q1. A manager wishes to lower the financial risk of a portfolio. She looks at the risks of her portfolio associated with currencies and commodities. In attempting to lower the financial risk associated with her portfolio, she should hedge:
A) the risk of neither currencies nor commodities because neither are associated with financial risk.
B) the risk associated with currencies, but not commodities since commodities are unrelated to financial risk.
C) the risk associated with both currencies and commodities.
Q2. A company has a portfolio composed of several securities with large bid/ask spreads. This is an indication that the portfolio has:
A) low liquidity risk, but the financial risk is not affected.
B) high liquidity risk, which means high financial risk.
C) high liquidity risk, but the financial risk is not affected.
Q3. Increasing the relative weight on OTC derivatives relative to the weight on exchange-traded derivatives in a portfolio will:
A) have no affect on credit risk or financial risk.
B) increase credit risk but decrease financial risk.
C) increase credit risk and financial risk. | 
发表于 2009-4-7 18:21
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