A Weakness of Migration Analysis to Evaluate Credit Concentration Risk

question 33

Multiple Choice

A weakness of migration analysis to evaluate credit concentration risk is that the

• A)information obtained for this analysis is usually ex-post (i.e.after the fact).
• B)information obtained for this analysis is ex-ante (i.e.before the fact).
• C)analysis makes use of historical data classified only by industries.
• D)analysis makes use of historical data classified by individual firms.
• E)migration of firms may only be temporary.

Understand the causes and effects of economic recessions and depressions in U.S. history.

Recognize the role of governmental policies in shaping economic outcomes.

Analyze the impact of major events, such as wars and technological advancements, on the U.S. economy.

Describe the evolution of U.S. economic growth and development over time.

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Definitions:

Sales Opportunity

A potential future sale or revenue-generating event that is identified after qualifying a lead, indicating the chance to sell a product or service to a prospect.

Expensive-To-Reach

Describes a target market segment that is costly to access, often due to geographic, demographic, or psychographic barriers.

Sales Potential

The estimated maximum total sales revenue of a product or service in a specific market over a set period.

EBIAT

Earnings Before Interest After Taxes, a measure of a company's profitability that excludes interest expenses but includes taxes.