The stock of a company is very sensitive to interest rate


The stock of A Company is very sensitive to interest rate movements. To be specific, A Company's shares tend to go up when rates go up, and its shares go down when rates go down. You conclude that:

A Company’s stock is immunized

A Company’s assets have a longer duration than its liabilities

A Company’s assets have a shorter duration than its liabilities

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Financial Management: The stock of a company is very sensitive to interest rate
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