When we are dealing with a full portfolio, we need to take account of the presence of capital (equity) in that portfolio and thus have to adjust DGAP.

Question

Quizplus · Accepted Answer

Adjusting DGAP (Duration Gap) for a full portfolio involves considering the equity or capital, as it affects the overall interest rate risk and the sensitivity of the portfolio's value to changes in interest rates.

When We Are Dealing with a Full Portfolio, We Need