What type of hedging to reduce risk

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Problem 1: A bank with cash outflow duration of 1.675, inflow duration of 1.52 and a duration gap of -0.38 should take on what type of hedging to reduce it's risk?

Total cash-inflow over 5 years is 3,075,000
Total cash outflow over 5 years is -2,715,000
Discount rate is 4.5%

Reference no: EM132971250

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