Which of the following is NOT generally correct about financial engineering?
A) Financial engineering is frequently used to hedge risk.
B) Financial engineering uses available financial instruments to create new securities.
C) The investments created by financial engineers are often riskier than the underlying securities.
D) In a world where prices are stable, there would be little demand for financial engineering.
E) Financial engineering is not a growth industry because the world is becoming less risky.

Question

Quizplus · Accepted Answer

Financial engineering is a growth industry because the world is not becoming less risky; in fact, financial markets are becoming more complex, which increases the demand for financial engineering to manage and hedge risks.

Which of the Following Is NOT Generally Correct About Financial