The Numbers Provided Are in Millions of Dollars and Reflect

question 55

Multiple Choice

The numbers provided are in millions of dollars and reflect market values: A risk manager could restructure assets and liabilities to reduce interest rate exposure for this example by

• A)increasing the average duration of its assets to 9.56 years.
• B)decreasing the average duration of its assets to 4.00 years.
• C)increasing the average duration of its liabilities to 6.78 years.
• D)increasing the average duration of its liabilities to 9.782 years.
• E)increasing the leverage ratio, k, to 1.

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Definitions:

Common Strategy

A widely used approach or method to achieve a specific goal or overcome a challenge, shared among various groups or individuals.

Organizing Proponents

Refers to the act of bringing together individuals or groups that support a particular cause, policy, or idea to effectively advocate for its implementation or acceptance.

Agency Staff

Employees or workers who are part of an organization or agency, contributing to its goals and objectives.

Policy

A course or principle of action adopted or proposed by an organization or individual, often in the form of rules, laws, or guidelines.