The linear probability model uses:
A) forecasted data, such as predicted future prices, as inputs into a model to explain repayment experience on old loans
B) current indices, such as consumer price index, as inputs into a model to explain repayment experience on old loans
C) past data, such as financial ratios, as inputs into a model to explain repayment experience on old loans
D) None of the listed options are correct.
Correct Answer:
Verified
Q38: Assume the interest rate in the market
Q39: Consider the case of ABC Company.The company's
Q40: Assume the interest rate in the market
Q41: Operational risk is the risk that the
Q42: Models of credit risk measurement include:
A)term structure
Q44: Loan to value ratio is the:
A)loan amount
Q45: Non-performing loans are loans with yield less
Q46: Default risk is the risk that the
Q47: Non-performing loans are loans:
A)given out to corporations
Q48: Credit scoring models include:
A)linear probability models
B)logit models
C)linear
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