Which of the following statements is true?
A) The concentration limit on a portfolio can be calculated as the maximum loss as a percentage of capital divided by (one divided by the loss rate) .
B) The concentration limit on a portfolio can be calculated as the maximum loss as a percentage of capital divided by (one multiplied by the loss rate) .
C) The concentration limit on a portfolio can be calculated as the maximum loss as a percentage of capital multiplied by (one divided by the loss rate) .
D) The concentration limit on a portfolio can be calculated as the maximum loss as a percentage of capital multiplied by (one multiplied by the loss rate) .
Correct Answer:
Verified
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