The Numbers Provided Are in Millions of Dollars and Reflect

Multiple Choice

The numbers provided are in millions of dollars and reflect market values: The shortcomings of this strategy are the following except

A) duration changes as the time to maturity changes, making it difficult to maintain a continuous hedge.
B) estimation of duration is difficult for some accounts such as demand deposits and savings accounts.
C) it ignores convexity which can be distorting for large changes in interest rates.
D) it is difficult to compute market values for many assets and liabilities.
E) it does not assume a flat term structure, so its estimation is imprecise.