Question: Which of the following statements is FALSE? a . The greater the convexity of a bond, the greater potential gain from rate decreases. b .

Which of the following statements is FALSE?
a. The greater the convexity of a bond, the greater potential gain from rate
decreases.
b. A bank needs to rebalance its immunised portfolio when interest rates
change
c. The repricing model ignores information regarding the distribution of the
amounts of assets and liabilities within maturity buckets
d. The repricing model considers how changes in interest rates affect the
market value of assets and liabilities
Which of the following statements is FALSE? a. The greater the

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