8-56 Which of the following is a weakness of the repricing model to measure interest rate risk?
A) Potential for overaggregation of assets and liabilities within each maturity bucket.
B) It ignores how changes in interest rates affect the market value of assets and liabilities.
C) It ignores the reinvestment of loan interest and principal payments that are reinvested at current market rates.
D) It fails to recognize off-balance-sheet activities that may be rate sensitive.
E) All of the above.
Correct Answer:
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