Question

What conclusions can you draw about the repricing gap model from these results?

A) It does not account for market fluctuations
B) It accurately predicts future pricing gaps
C) It is inconsistent and unreliable
D) It relies heavily on historical data

Answer 1

The repricing gap model relies heavily on historical data to predict future pricing gaps, but may not accurately account for market fluctuations.

Step-by-step explanation:

The conclusions that can be drawn about the repricing gap model from these results are that it relies heavily on historical data. This means that it uses past pricing gaps to predict future gaps. However, it may not accurately account for market fluctuations as it is based on historical data and may not be able to accurately predict future pricing gaps.