Question (a correct answer wins participation weekly trivia prize, see here):
Chapter 1 [The Credit Decision] of The Bank Credit Analysis Handbook is a new addition to the FRM syllabus. It briefly introduces the key credit risk variables EL, PD, LGD, EAD. Follow this link to a brief but literal two-page, 800-word PDF extract (copy of the section's text): http://trtl.bz/1mQomKA
There is a mistake in this reading's text, it is a highly testable FRM concept (e.g., it has appeared in two prior exams). Can you replace the mistaken (at best, highly imprecise) sentence with something accurate?
Chapter 1 [The Credit Decision] of The Bank Credit Analysis Handbook is a new addition to the FRM syllabus. It briefly introduces the key credit risk variables EL, PD, LGD, EAD. Follow this link to a brief but literal two-page, 800-word PDF extract (copy of the section's text): http://trtl.bz/1mQomKA
There is a mistake in this reading's text, it is a highly testable FRM concept (e.g., it has appeared in two prior exams). Can you replace the mistaken (at best, highly imprecise) sentence with something accurate?