nannan66

I couldn't find out in curriculum, but Schweser says "LADG is a measure of the duration of bank's equity".

To calculate the duration dollar, we can get it directly: DD= [A*Dur(Asset) - L*Dur(Liability) ]*0.01, which is LADG*A*0.01 as you've shown.

I understand your question, so LADG is not exactly the duration of net worth(A-L). And it's not the duration of asset, either.

The duration of net worth(A-L) might be like (A/E)*Dur(Asset) - (L/E)*Dur(Liability). But LADG does look simpler.