A Risk Manager Could Restructure Assets and Liabilities to Reduce

question 74

Multiple Choice

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:

Older Adult

An individual typically defined as being at a later stage in life, often marked by retirement, increased leisure time, and different societal roles.

Postmenopausal Women

Women who have gone through menopause and no longer have menstrual periods.

Physical Activities

Any bodily movement produced by skeletal muscles that requires energy expenditure, promoting physical fitness and health.

Skeletal Changes

Alterations that occur in the skeletal system due to factors such as aging, disease, nutrition, or injury.