Immunizing the balance sheet to protect equity holders from the effects of interest rate risk occurs when Group of answer choices the effect of a change in the level of interest rates on the value of the assets of the FI is exactly offset by the effect of the same change in interest rates on the liabilities of the FI. the repricing gap is zero, so that all assets have a matching liability that reprices at the same time. the modified duration gap of the balance sheet is zero. the maturity gap is zero, so that all assets have a matching-maturity liability. the modified duration is equal to the dollar duration.

Historically, 12 percent of a mail-order firm's repeat charge-account customers have an incorrect current address in the firm's computer database. the number of customers out of 19 who have an incorrect address in the database is a binomial random variable with n = 19 and 2formula36.mml = 0.12.

The vaska company buys a patent on january 1, year one, and agrees to pay $100,000 per year for the next five years. the first payment is made immediately, and the payments are made on each january 1 thereafter. if a reasonable annual interest rate is 8 percent, what is the recorded value of the patent? 1. $378,4252. $431,2133. $468,9504. $500,000

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?