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One Problem with Duration Gap Analysis Is That It

Question 59

Multiple Choice
One problem with duration gap analysis is that it

One problem with duration gap analysis is that it


A) is calculated assuming that the yield curve is flat.
B) is calculated assuming that the yield curve does not change.
C) does not measure the sensitivity of net worth to interest rate changes.
D) does not measure the sensitivity of income to interest rate changes.
E) applies only to financial institutions.

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