If the Duration Gap Is Negative, a Fall in Interest

question 22

True/False

If the duration gap is negative, a fall in interest rates will result in a net capital gain on our position.

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Definitions:

Statistically Significant

A measure indicating that the likelihood a result occurred by chance is low, often used in hypothesis testing.

Hypothesis

An initial theory put forward with restricted evidence to guide subsequent research.

Due to Chance

Describes scenarios or results that occur without any deliberate intention or causal relationship, attributed purely to randomness.

Forms of Reliability

Different methods for assessing the consistency and dependability of a measure or test, including test-retest reliability, inter-rater reliability, and internal consistency.