The Average Duration of the Loans Is 10 Years

question 143

Multiple Choice

The average duration of the loans is 10 years. The average duration of the deposits is 3 years. What is the gain or loss on the futures position using T-Bonds (Duration = 9 years, $96 per $100 face value) if the shock to interest rates is 1 percent [i.e. ΔR/(1 + R) = 0.01 and ΔR_f/(1 + R_f) = 0.011]?

• A)$16,320,960 loss.
• B)$16,312,320 gain.
• C)$15,552,750 gain.
• D)$15,552,750 loss.
• E)$13,252,250 gain.

Understand and articulate the impact of life experiences on the development of personality theories.

Knowledge on the adaptability and application of Rorschach Inkblot tests and MMPI across different ethnic groups.

Comprehend the concepts of reliability and validity in the context of personality assessment.

Identify and evaluate the major approaches to personality assessment.

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Definitions:

Standard Deviation

Standard deviation quantifies the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the spread of a data set.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can purchase, given their income and the prices of the goods.

Expected Rate

A forecasted value, often referring to interest or growth rates, based on current and historical data.