# Level III Institutional Investors

## Access to all Level III institutional investors articles until the next Level III exam date

This is an easy one, fortunately. The definition of LADG is: $LADG\ =\ Dur_{Assets}\ -\ \frac{L}{A}Dur_{Liabilities}$ where: $Dur_{Assets}$: (effective) duration of assets $Dur_{Liabilities}$: (effective) duration of liabilities $L$: market value of liabilities $A$: market value of assets If we multiply both sides of this equation by A, we get: \begin{align}\left(A\right)LADG\ &=\ \left(A\right)Dur_{Assets}\ -\ \left(L\right)Dur_{Liabilities}\\ \\ […]