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Weaknesses of the repricing gap model include the fact that: I. It ignores market value effects of changes in interest rates. II. It ignores different
Weaknesses of the repricing gap model include the fact that:
I. It ignores market value effects of changes in interest rates.
II. It ignores different cash flow sensitivities within a maturity bucket.
III. It is inaccurate for large changes in interest rates.
A. I, II, and III.
B. I and II.
C. II and III only.
D. I only.
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