20-22 It is likely that the discrepancy between book value of equity and market value of equity will increase as volatility in interest rates increases.

Question

Quizplus · Accepted Answer

When there is an increase in interest rate volatility, the market value of equity will be more sensitive to changes in interest rates, which may lead to a larger discrepancy between book value and market value of equity.

20-22 It Is Likely That the Discrepancy Between Book Value