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Which of the Following Is True About Hedging Using Duration

Question 76

Multiple Choice

Which of the following is true about hedging using duration analysis?


A) The institution may hedge its earnings and its net worth simultaneously.
B) If market value weighted asset duration is greater than the liability counterpart, sell financial futures to "immunize."
C) If market value weighted asset duration is greater than the liability counterpart, buy financial futures to "immunize."
D) Maturity hedging provides the same hedging as duration hedging.

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