Immunizing the balance sheet to protect equity holders from the effects of interest rate risk occurs when Question 20Answer a. the effect of a change in the level of interest rates on the value of the assets of the FI is precisely offset by the effect of the exact change in interest rates on the liabilities of the FI. b. The leverage ratio is zero. c. The modified duration gap of the balance sheet is greater than one. d. The modified duration is equal to the dollar duration. e. The leverage-adjusted duration gap is one