Multiple Choice
Which of the following is a problem in using discriminant analysis to evaluate credit risk?
A) It does not consider gradations of default.
B) The weights in the discriminant function are assumed to be dynamic.
C) It can include hard-to-quantify factors.
D) Data on loan specific information of banks are readily available.
E) It does not assume that variables are independent of one another.
Correct Answer:
Verified
Correct Answer:
Verified
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