In Some Cases, Market Risk in a Lease Contract May

question 84

Multiple Choice

In some cases, market risk in a lease contract may arise from the:

• A) default of payment on the part of the lessee due to price variation
• B) default on the asset delivery by the bank/lessor
• C) termination of the lease by the lessee earlier than the contractual term either through default in payment or due to some other factors
• D) All of the above

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Definitions:

Z Score

A statistical measure that describes a value's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean.

Mean

The arithmetic average of a set of numbers, calculated by summing all the numbers and then dividing by the count of the numbers.

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of the values by the number of values.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.