Question
(a) Explain what make the ETF an ideal instrument to achieve the objective of a diversified share portfolio compared to other instruments. (3 marks) (b)
(a) Explain what make the ETF an ideal instrument to achieve the objective of a diversified share portfolio compared to other instruments. (3 marks)
(b) A financial advisor tells his client that "interest rate swaps are like fixed rate loans and it help you to protect yourself from rising interest rates and lock in profit margins". Is this advice always true? Provide explanation for your argument. (4 marks)
(c) After the 2007-2009 GFC, one commentator blamed hedge funds were the primary cause of the financial crisis criticizing their short selling activities destroy good companies. Is the commentator right or wrong? (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started