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Providing that the firm managers have sufficient expertise to manage the following risk-reducing strategies, which would NOT tend to reduce the firm's expected profitability? Investments in credit derivatives O Diversification of the firm's assets O Investments in interest rate futures contracts In fact, all of these risk-reducing strategies would tend to reduce average profits Issuance of credit-linked notes (in lieu of standard bond issues) When not used as part of a hedging strategy, which of the following has the lowest level of interest rate risk for the payment recipient? An instrument consisting of the entire mortgage payment The principal-only mortgage split The three provided choices are equally risky O The interest-only mortgage split