What should be the average duration of its assets

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Safelife insurance company has $85 million in assets, $80 million in liabilities, and $5million in shareholders' equity. The duration of liabilities is 3. If Safelife wants to immunize its net worth against interest rate risk (i.e. set the duration of equity equal to zero), what should be the average duration of it's assets?

Reference no: EM131047750

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