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.
Correct Answer:
Verified
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