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The Return (Ri) on a Loan Can Be Measured as Follows

Question 9

Multiple Choice

The return (Ri) on a loan can be measured as follows:


A) AISi - E(Li) , whereby E(Li) = (EDFi ×\times LGDi)
B) AISi - E(Li) , whereby E(Li) = (EDFi / LGDi)
C) AISi + E(Li) , whereby E(Li) = (EDFi ×\times LGDi)
D) AISi + E(Li) , whereby E(Li) = (EDFi / LGDi)

Correct Answer:

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