Which of the following is a measure of the sensitivity of loan losses in a particular business sector relative to the losses in an FI's loan portfolio?

Question

Quizplus · Accepted Answer

Systematic loan loss risk measures the degree to which loan losses in a particular business sector are sensitive and correlated with the losses in an FI's loan portfolio. Loss rate measures the amount of loan losses as a percentage of the total loan portfolio, concentration limit is the maximum amount an FI can lend to a particular borrower or sector, loss given default measures the amount of loss incurred if a borrower defaults, and expected default frequency measures the likelihood of a borrower defaulting on a loan.

Which of the Following Is a Measure of the Sensitivity