Question 13 (Mandatory) (6.25 points) Which of the following statements is most correct? A) Duration gap measures the impact of changes in interest rates on the market 18 value of equity. B) Optimally, duration of asssets should equal to duration of liabilities for financial institutions. C) The shorter the maturity of the FI's securities, the greater the FI's interest rate risk exposure. (D) The duration of equity is equal to the duration of assets minus the duration of liabilities. OE) The duration of all floating rate debt instruments is equal to the time to maturity. Question 14 (Mandatory) (6.25 points) SavedTime Left:1:26:56 Minjie Wang: Attempt 1 Question 1 (Mandatory) (6.25 points) For a given change in interest rates, compared with fixed-rate assets with shorter maturities, fixed-rate assets with longer maturities will have _ _ _ _ _ changes in price. OA) negative B) smaller O C) positive D) bigger E) zero Question 2 (Mandatory) (6.25 points) Saved that the DEARs of two of its major assets