A Fixed Income Analyst Is Least Likely to Conduct an Independent

question 21

Multiple Choice

A fixed income analyst is least likely to conduct an independent analysis of credit risk because credit rating agencies:

• A) may at times mis-rate issues.
• B) often lag the market in pricing credit risk.
• C) cannot foresee future debt-financed acquisitions.

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Definitions:

Observed Counts

The actual numbers counted in each category or group in a study or experiment.

Distribution

In statistics, it refers to the way in which data points are spread or dispersed across a range of values.

T Procedure

The T procedure, often referred to as the T-test, is a statistical test used to determine if there is a significant difference between the means of two groups which may be related in certain features.

Random Sample

A random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen.