If Duration of Asset Is Less Than the Liability Leverage

question 50

True/False

If duration of asset is less than the liability leverage times the duration of liability, then falling interest rates will cause the market value of equity to rise.

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Definitions:

Textual Poaching

The act of audiences and fans creating their own meanings, interpretations, or adaptations from media contents originally produced by others.

Magic Bullet Theory

A model in media studies suggesting that mass media messages have a direct, immediate, and powerful effect on the public.

Uses and Gratifications Theory

A theory in media studies and communication that explains how people actively seek out specific media and content to satisfy individual needs or desires.

Encoding/Decoding Model

A theory on media that combines models that privilege the media producer and models that view the audience as the primary source of meaning; this theory recognizes that media texts are created to deliver specific messages and that individuals actively interpret them.