Explain how the probability distribution of a financial institution's returns is affected when it uses interest rate

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Explain how the probability distribution of a financial institution's returns is affected when it uses interest rate futures to hedge. What does this imply about its risk?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Auditing a business risk appraoch

ISBN: 978-0324375589

6th Edition

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

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