Question
When the investor's duration gap is negative: a) Reinvestment risks dominates, and the investor is at risk of lower rates. b) The investor is hedged
When the investor's duration gap is negative:
a) Reinvestment risks dominates, and the investor is at risk of lower rates.
b) The investor is hedged against interest rate risk.
c) Market price risk dominates, and the investor is at risk of higher rates.
d) The investor is at risk of both lower rates and higher rates.
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
