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NEW QUESTION: 1
What is a purpose of the Risk Management Strategy?
A. Describes the risk response actions taken to mitigate the project's risks
B. Describes in detail each risk identified in the project and how each risk should be managed
C. Describes the techniques and standards to be applied and the responsibilities for achieving effective risk management procedures
D. Describes how each risk owner and risk actionee will manage and fund the actions to mitigate each risk
Answer: C

NEW QUESTION: 2
Arnold Wu owns a floating rate bond. He is concerned that the rates may fall in the future decreasing his
payment amount. Which of the following instruments should he buy to hedge against the fall in interest rates?
A. Index amortizing swap
B. Interest rate swap that receives floating and pays fixed
C. Interest rate cap
D. Interest rate floor
Answer: D

NEW QUESTION: 3
Which of the following rates represents the highest investment yield in the Euromarket?
A. Annual bond yield of 3.75%
B. Semi-annual bond yield of 3.75%
C. Semi-annual money market yield of 3.75%
D. Annual money market rate of 3.75%
Answer: C