Multiple Choice
Which of the following statements is true?
A) Cumulative default probability is the probability that a borrower will default over a specified multi-year period.
B) Cumulative default probability is the probability that a borrower will default in any given year.
C) Marginal default probability is the probability that a cluster of borrowers will default over a specified multi-year period.
D) None of the listed options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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