All of the following requirements are typically addressed in job specifications EXCEPT ________

Balanced mutual funds

A) invest only in bonds. B) provide capital growth through bond coupon payments. C) appeal to the investor who has a moderate tolerance for risk. D) invest only in stocks.

Unlike the situation with exchange rate risk, there is no uncertainty on the part of management for shareholder preferences regarding interest rate risk

Shareholders prefer that managers hedge interest rate risk rather than having shareholders diversify away such risk through portfolio diversification. Indicate whether the statement is true or false.