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    Financial Institutions Management
  4. Exam
    Exam 11: Credit Risk: Loan Portfolio and Concentration Risk
  5. Question
    In the Use of Modern Portfolio Theory (MPT), the Sum
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In the Use of Modern Portfolio Theory (MPT), the Sum

Question 43

Question 43

True/False

In the use of modern portfolio theory (MPT), the sum of the credit risks of loans under estimates the risk of the whole portfolio.

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