If you use duration only to immunize your portfolio, what three factors affect changes in an FIs
Question:
If you use duration only to immunize your portfolio, what three factors affect changes in an FI’s net worth when interest rates change?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
The change in the net worth of an FI for a change ...View the full answer
Answered By
Hemstone Ouma
"Hi there! My name is Hemstone Ouma and I am a computer scientist with a strong background in hands-on experience skills such as programming, sofware development and testing to name just a few. I have a degree in computer science from Dedan Kimathi University of Technology and a Masters degree from the University of Nairobi in Business Education. I have spent the past 6 years working in the field, gaining a wide range of skills and knowledge. In my current role as a programmer, I have had the opportunity to work on a variety of projects and have developed a strong understanding of several programming languages such as python, java, C++, C# and Javascript.
In addition to my professional experience, I also have a passion for teaching and helping others to learn. I have experience as a tutor, both in a formal setting and on a one-on-one basis, and have a proven track record of helping students to succeed. I believe that with the right guidance and support, anyone can learn and excel in computer science.
I am excited to bring my skills and experience to a new opportunity and am always looking for ways to make an impact and grow as a professional. I am confident that my hands-on experience as a computer scientist and tutor make me a strong candidate for any role and I am excited to see where my career will take me next.
5.00+
8+ Reviews
22+ Question Solved
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
Question Posted:
Students also viewed these Banking questions
-
What three factors affect the decision as to when to recognize revenue?
-
If an FI uses only duration to immunize its portfolio, what three factors affect changes in the net worth of the FI when interest rates change? The change in net worth for a given change in interest...
-
What will your portfolio be worth in 10 years? In 20 years? When can you stop working? The Human Resources Department at Four Corners Corporation was asked to develop a financial planning model that...
-
After their divorce, Brian Bermudez and Amanda Schmidt shared custody of their son. Schmidt suspected Bermudez of abusing the child, so she refused to let him visit. Bermudez filed a petition...
-
In this problem, we explore the effect on the standard deviation of multiplying each data value in a data set by the same constant. Consider the data set 5, 9, 10, 11, 15. (a) Use the defining...
-
Sager Company builds custom retaining walls for large commercial customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials. On May...
-
Estimate the time required for the water depth in the reservoir shown in Fig. P8. 98 to drop from a height of \(25 \mathrm{~m}\) to \(5 \mathrm{~m}\). The connections are threaded. Figure P8.98 500 m...
-
Martin Acampora purchased a shotgun at a garage sale years ago, never used the weapon, and did not know of any defects in it. His 31-year-old son Marty borrowed the shotgun to go duck hunting. As...
-
What replacement behavior could be taught to a student as part of a behavior intervention plan and what type of generalization could be used to help the student apply that behavior to a different...
-
A store maintains data on customers, products and purchase records in three tables: CUSTOMER, PRODUCT, PURCHASE. The store manager wants to know which product is on its maximum discount for each...
-
How is duration related to the interest elasticity of a fixed-income security? What is the relationship between duration and the price of the fixed-income security?
-
If a bank manager was quite certain that interest rates were going to rise within the next six months, how should the bank manager adjust the banks duration gap to take advantage of this anticipated...
-
Why do some countries report higher percentages of family businesses than other countries?
-
W. Hope's year ended on 30 June 2015. Write up the ledger accounts, showing the transfers to the financial statements and the balances carried down to the next year for the following: (a) Stationery:...
-
On 1 January 2015 the following balances, among others, stood in the books of A. Cook, a sole proprietor: (a) Business rates, 600 (Dr); (b) Packing materials, 1,400 (Dr). During the year ended 31...
-
D. Faculti started in business buying and selling law textbooks, on 1 January 2016. At the end of each of the next three years, his figures for accounts receivable, before writing-off any bad debts,...
-
Derive an expression for each of the following that is, as much as possible, in terms of measurable properties: and C V , and their partial derivatives with respect to each other. S can appear in the...
-
A motor vehicle which cost 12,000 was bought on credit from Trucks Ltd on 1 January 2013. Financial statements are prepared annually to 31 December and depreciation of vehicles is provided at 25 per...
-
A plumbing fixture outlet is 120 ft above the water service line. Pressure available at the water service is 80 psi. Determine the change in pressure from elevation.
-
Software Solution is family-owned business that has been in operation for more than 15 year. The board of directors is comprised of mainly family members, plus a few professionals such as an...
-
The percentage of heights between 146 centimeters and 156 centimeters
-
The Basel Accords attempted to address which of the following issues? a. Sufficient levels of bank capital b. Different levels of deposit insurance in different countries c. The lack of an...
-
Robert is confused about why regulators created the too big to fail policies. What would you tell Robert?
-
Explain how regulators use the CAMEL rating in the regulation process.
-
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter...
-
Provide documentation of a step by step training plan for a beta fish. What will be the primary reinforcer? How will you cue the behavior? What schedule of reminforcement will you use. What is the...
-
On May 1, Soriano Company reported the following account balances along with their estimated fair values: Items Carrying Amount Fair Value Receivables Inventory Copyrights Patented technology Total...
Study smarter with the SolutionInn App