One Problem with Duration Gap Analysis Is That It

question 41

Multiple Choice

One problem with duration gap analysis is that it

• A) is calculated assuming that the yield curve is flat.
• B) is calculated assuming that the yield curve does not change.
• C) does not measure the sensitivity of net worth to interest rate changes.
• D) does not measure the sensitivity of income to interest rate changes.
• E) applies only to financial institutions.

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