________ is the sensitivity of a firm's assets and liabilities to interest rate changes.

Name: ________ is the sensitivity of a firm's assets and liabilities to interest rate changes.
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Question

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Duration measures the sensitivity of a firm's assets and liabilities to interest rate changes. A higher duration means that a firm's cash flows are more affected by changes in interest rates, while a lower duration means that a firm's cash flows are less sensitive to changes in interest rates.

________ Is the Sensitivity of a Firm's Assets and Liabilities