Which of the Following Is True Regarding Duration Gap Analysis

Multiple Choice

Which of the following is true regarding duration gap analysis?

A) The magnitude of the duration gap is related to the amount of interest rate risk a bank is subject to.
B) Management can adjust the duration gap to speculate on future interest rate changes.
C) A positive duration gap means a bank's market value of equity will decrease with an increase in interest rates.
D) All of the above are true.
E) a.and c.