Show that if the bank wants to immunize the capital ratio to the interest rate risk, then the bank should choose to set the duration gap to be zero. That is DA = DL E EEo, where Eo = (Hint: The change in the capital ratio can be computed as A A A Ao Ao Lo and E = A - L denote the market value of equity before and after the interest rate change.) = Show that if the bank wants to immunize the capital ratio to the interest rate risk, then the bank should choose to set the duration gap to be zero. That is DA = DL E EEo, where Eo = (Hint: The change in the capital ratio can be computed as A A A Ao Ao Lo and E = A - L denote the market value of equity before and after the interest rate change.) =