Investors of all kinds can resort to financial engineering to minimize risk. All of the following are sophisticated investors who use financial engineering EXCEPT
A) hedge funds.
B) insurance companies.
C) commercial banks.
D) investment banks.
E) individuals.

Question

Quizplus · Accepted Answer

Investors of all kinds and especially sophisticated investors like insurance companies, hedge funds, investment banks, and commercial banks can resort to financial engineering to minimize risk. Financial engineering involves the use of derivative securities to reduce a specific risk.

Investors of All Kinds Can Resort to Financial Engineering to Minimize