9-116 the Shortcomings of This Strategy Are the Following Except

question 68

Multiple Choice

9-116 The shortcomings of this strategy are the following except

• A)duration changes as the time to maturity changes,making it difficult to maintain a continuous hedge.
• B)estimation of duration is difficult for some accounts such as demand deposits and passbook savings account.
• C)it ignores convexity which can be distorting for large changes in interest rates.
• D)it is difficult to compute market values for many assets and liabilities.
• E)it does not assume a flat term structure,so its estimation is imprecise.

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Definitions:

Complications

Unintended and typically adverse outcomes that arise from a disease, condition, or a procedure, often making the initial health issue more difficult to treat.

Co-morbidities

The simultaneous presence of two or more medical conditions or diseases in a patient, which can complicate the diagnosis, treatment, and prognosis.

POA Assignments

Indicators used in medical billing and coding to specify if a diagnosis was present at the time of admission.

Codes

A system of symbols or sequences used for the classification or identification of data, items, or conditions, often used in digital communication and healthcare.