Which of the following statements is correct?

Select one:

a.

The larger the asset size, the lower is the firms interest rate risk on equity.

b.

Generally, interest rate risk management aims to maximize the effect of interest rate changes on equity/firm value.

c.

The larger the leverage-adjusted duration gap is in absolute terms, the lower is interest rate risk.

d.

The larger the leverage-adjusted duration gap is in absolute terms, the higher is interest rate risk.

e.

Immunization of the balance sheet requires that the change in equity value due to a small change in interest rate is greater than 1.