In the Moody's Analytics Portfolio Model, the Risk of a Loan

question 1

Multiple Choice

In the Moody's Analytics portfolio model, the risk of a loan measures

• A)the product of the estimated loss given default and risk-free rate on a security of equivalent maturity.
• B)annual all-in-spread minus the loss given default.
• C)annual all-in-spread minus the expected default frequency.
• D)the product of the expected default frequency and the estimated loss given default.
• E)the volatility of the loan's default rate around its expected value times the amount lost given default.

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