Question: Immunizing the balance sheet to protect equity holders from the effects of interest rate risk occurs when Select one: a. The duration gap is zero.

 Immunizing the balance sheet to protect equity holders from the effects

Immunizing the balance sheet to protect equity holders from the effects of interest rate risk occurs when Select one: a. The duration gap is zero. b. The difference between the duration of asset portfolio and the product of the duration of liability portfolio by leverage ratio is zero. c. The repricing gap is zero, d. The maturity gap is zero e. The duration of asset portfolio equals the duration of liability portfolio

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