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If the Chosen Maturity Buckets Have a Time Period That

Question 66

Multiple Choice

If the chosen maturity buckets have a time period that is too long,the repricing model may produce inaccurate results because


A) as the time to maturity increases,the price volatility increases.
B) price changes will be overestimated.
C) there may be large differentials in the time to repricing for different securities within each maturity bucket.
D) the FI will be unable to accurately measure the quantity of rate-sensitive assets.

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