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66/74/75 i will give a thumbs up Which of the following represent undiversifiable risks? 1. The Federal Reserve raises interest rates. II. A product is

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Which of the following represent undiversifiable risks? 1. The Federal Reserve raises interest rates. II. A product is recalled because of safety problems III. The economy slips into a recession 1. The CEO's divorce settlement forces him to sell off half of his stock holdings. O A. II and Ill only B. I and Ill only OC. II and IV only OD. II and IV only O E. II, III and IV Insert appropriate prompt input type, and other instructions here. How does the price of a future change as volatility of the underlying increases? O A. Decreases Since it is riskier, the risk is pnced in O B. Increases. Since it is riskier, the risk is priced in. O C. Stays constant. Volatility has no effect OD. Decreases. Since it is niskier, fewer people want to buy it O E. Increases. Since it is riskier, fewer people want to sell it (In a) floating-for-fixed interest rate swap, O A. the party that receives the fixed rate is likely betting on interest rates to rise. B. All are correct O C. can not only be used to hedge interest rate risk, but also can be used to speculate on the future interest rates OD. None are correct O E. the present value of the floating payments goes up as interest rates go down Insert appropriate prompt input type, and other instructions here

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