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.
[Refer to: 9-121]

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Quizplus · Accepted Answer

The Answer of 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.
[Refer to: 9-121]

A Risk Manager Could Restructure Assets and Liabilities to Reduce