Which of the following statements is false?
A) We can measure a firm's sensitivity to interest rates by computing the duration of its balance sheet.
B) A firm's market capitalization is determined by the difference in the market value of its assets and its liabilities.
C) By restructuring the balance sheet to increase its duration, we can hedge the firm's interest rate risk.
D) All of the above are true.

Question

Quizplus · Accepted Answer

C) By restructuring the balance sheet to reduce its duration, we can hedge the firm's interest rate risk.

Which of the Following Statements Is False