One problem with duration gap analysis is that it:
A) is calculated assuming that the yield curve does not change.
B) is calculated assuming the yield curve is flat.
C) does not measure the sensitivity of net worth to interest rate changes.
D) does not measure the sensitivity of income to interest rate changes.

Question

Quizplus · Accepted Answer

Duration gap analysis assumes a flat yield curve, which can be a limitation as it does not account for changes in the shape of the yield curve.

One Problem with Duration Gap Analysis Is That It