Put the Following Steps in Duration Gap Analysis in the Proper

Multiple Choice

Put the following steps in duration gap analysis in the proper order.
I. Estimate the economic value of assets, liabilities and equity.
II. Forecast the change in the economic value of equity for various interest rates.
III. Forecast future interest rates.
IV. Estimate the duration of assets and liabilities.

A) III, I, IV, II
B) I, II, III, IV
C) III, IV, I, II
D) IV, I, II, III
E) II, IV, I, III