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Which is not correct?
Risk management is way that financial institutions and other firms can use derivative securities
to adjust the risk of their existing investments in securities.
Speculation allows an investor to speculate on movements in the value of the underlying assets
without having to purchase those assets in derivative investment.
Mortgage-backed securities are long-term debt obligations created to finance the purchase of
real estate.
Derivative Securities are financial contracts whose values are derived from the values of
underlying assets
Risk management is way that financial institutions and other firms can use derivative securities
to adjust the risk of their existing investments in securities.
Speculation allows an investor to speculate on movements in the value of the underlying assets
without having to purchase those assets in derivative investment.
Mortgage-backed securities are long-term debt obligations created to finance the purchase of
real estate.
Derivative Securities are financial contracts whose values are derived from the values of
underlying assets

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Which is not correctRisk management is way that financial institu.pdf

  • 1. Which is not correct? Risk management is way that financial institutions and other firms can use derivative securities to adjust the risk of their existing investments in securities. Speculation allows an investor to speculate on movements in the value of the underlying assets without having to purchase those assets in derivative investment. Mortgage-backed securities are long-term debt obligations created to finance the purchase of real estate. Derivative Securities are financial contracts whose values are derived from the values of underlying assets Risk management is way that financial institutions and other firms can use derivative securities to adjust the risk of their existing investments in securities. Speculation allows an investor to speculate on movements in the value of the underlying assets without having to purchase those assets in derivative investment. Mortgage-backed securities are long-term debt obligations created to finance the purchase of real estate. Derivative Securities are financial contracts whose values are derived from the values of underlying assets