The best deﬁnition of ﬁnancial engineering is:
A) A company that owns or ﬁnances income-producing real estate.
B) A company that owns or ﬁnances engineering projects.
C) Creation of new securities or ﬁnancial processes.
D) Financial markets where long-term debt and equity securities are bought and sold.
E) The purchase or sale of securities whose value derives from the price of another, underlying, asset.

Question

Quizplus · Accepted Answer

Financial engineering is the creation of new securities or financial processes, such as the development of complex financial instruments or the design of new investment strategies. The other answer choices (A, B, D, and E) do not accurately describe financial engineering.

The Best Deﬁnition of ﬁNancial Engineering Is