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    Financial Institutions Management Study Set 2
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    Exam 6: Interest Rate Risk Measurement: the Duration Model
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    The Larger the Numerical Value of the Duration of an Asset
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The Larger the Numerical Value of the Duration of an Asset

Question 48

Question 48

True/False

The larger the numerical value of the duration of an asset or liability, the less sensitive the price of that asset or liability is to changes in the interest rate.

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