Which of the Following Completes the Statement: All Else Equal

question 55

Multiple Choice

Which of the following completes the statement: All else equal, the higher the duration of a loan,

• A)the lower the current level of interest rates, the higher the RAROC.
• B)the lower the expected change in risk premium, the lower the RAROC.
• C)the higher the expected change in risk premium, the higher the RAROC.
• D)the higher the loan amount, the lower the RAROC.
• E)the lower the loan amount, the lower the RAROC.