reissrob197 reissrob197

07-05-2024
Business

Answered

Which statement is not true about the CreditRisk Plus model?
a. It assumes the correlation between the defaylts on any pair of loans is zero.
b. It assumes the probability of any individual loan defaulting in the portfolio of loans is random.
c. It is appropriate for analyzing the default risk on large portfolios of small loans.
d. It assumes the frequency of default events follows normal distribution.

Answer :

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