Achieve the objective of a diversified share portfolio

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(a) Explain what make the ETF an ideal instrument to achieve the objective of a diversified share portfolio compared to other instruments.

(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.

(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?

Reference no: EM133056165

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