________ Is the Sensitivity of a Firm's Assets and Liabilities

question 96

Multiple Choice

________ is the sensitivity of a firm's assets and liabilities to interest rate changes.

• A)Asset mismatch
• B)Gamma
• C)Duration
• D)Vega
• E)Basis risk

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Definitions:

Imply Causation

To suggest that one event is the result of the occurrence of another event without direct evidence, often confused with correlation.

Third Variable

A factor, often unmeasured, that can be the true cause behind the observed relationship between two variables.

Correlational Method

Research in which two or more variables are measured and compared to determine to what extent, if any, they are associated.

Quasi-Experimental Design

A research strategy that attempts to estimate the causal impact of an intervention without random assignment to treatment or control groups.