Question: Question 7 6.25 pts When does duration become a less accurate predictor of expected change in security prices? When the leverage adjustment is incorporated. As

Question 7 6.25 pts When does "duration" become a less accurate

Question 7 6.25 pts When does "duration" become a less accurate predictor of expected change in security prices? When the leverage adjustment is incorporated. As inflation decreases. When maturity distributions of an Fl's assets and liabilities are considered As interest rate shocks increase in size. As interest rate shocks decrease in size

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