How maturity mismatch between retail loans and retail deposit result in interest rate risk.. which can be mitigated by using bucketing..i m not able to explain this point... Can any one help me to understand this point?
Analyst in his attempt to develop a model for predicting future correlation between two stock returns, perform auto regression to get below equation p(t) = 0.1 +0.3 p(t-1).
What will be the auto correlation for one period lag as calculated with respect to mean reversion?
a. 0.7
b. 0.10
c...
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