Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A bank has calculated its duration gap as 1.64 years and its weighted average return of assets as 4.41%. The bank has a total of
A bank has calculated its duration gap as 1.64 years and its weighted average return of assets as 4.41%. The bank has a total of $651 thousand market value in assets. If interest rates decrease by 0.89% for all assets and liabilities, according to EVE sensitivity analysis what is the approximate expected change in the economic value of equity? Round your final answer to two decimal places (Ex. $0.00)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started