Question: The essential difference between Duration and Repricing gap in measuring a firms interest risk exposure is: a. Compared with Duration, Repricing gap considers the size

The essential difference between Duration and Repricing gap in measuring a firms interest risk exposure is:

a. Compared with Duration, Repricing gap considers the size and timing of cash flows.

b. Compared with Repricing gap, Duration does not consider capital loss and capital gain effect.

c. Compared with Duration, Repricing gap considers the leverage effect.

d. Duration measures the effect of interest rate changes on the net firm value, while Repricing gap measures the effect of interest rate changes on the net firm income.

e. Duration measures the effect of interest rate changes on the net firm income, while Repricing gap measures the effect of interest rate changes on the net firm value.

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