Which of the following methods measure loan concentration risk by tracking credit ratings of firms in particular sectors or ratings class for unusual downgrades?
A) Migration analysis.
B) Concentration limits.
C) Loan loss ratio-based model.
D) Moody's Analytics portfolio manager model.
Correct Answer:
Verified
Q4: Migration analysis is not appropriate for an
Q5: The expected return of a portfolio of
Q9: Portfolio risk can be reduced through diversification
Q17: The simple model of migration analysis tracks
Q18: A disadvantage to modern portfolio theory (MPT)
Q21: If a bank's concentration limit (as a
Q23: Migration analysis is a tool to measure
Q33: Included in the Moody's Analytics model are
Q34: General diversification limits established by life and
Q39: Which of the following observations concerning concentration
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