Solved

Weaknesses of the Duration Gap Immunization Model Include All but Which

Question 42

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents