You are working at a bank, and after analyzing the $295 million portfolio of debt securities, you have determined a portfolio duration of 3.65, and an average Yield to Maturity of 5.65%. If you believe interest rates will be increasing by 0.75%, what is your expected change in portfolio value? If on the other hand, the prevailing wisdom is that rates will drop by 0.25%, what is the expect change in portfolio value? Briefly, what is wrong with this type of analysis? Additionally, what would be wrong with regulators coming in and asking you to repeat this analysis for an increase in interest rates of 3%?