Weaknesses of the duration gap immunization model include all but which of the following?
A) Continuously matching the duration of assets and liabilities can be time-consuming and costly.
B) Duration-based predictions are always incorrect due to convexity.
C) Duration measurement and management are more complex than the repricing model.
D) Duration-based immunization strategies require continuous rebalancing of asset and liability durations.
E) Duration measures only how cash flows change,not the present value of those changes.
Correct Answer:
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