Which of the Following Isnot an Important Benefit of Using

question 13

Multiple Choice

Which of the following isnot an important benefit of using copula functions for correlated default?

• A)Copula distribution functions are computationally more tractable than multivariate normal distributions.
• B)Copulas allow separation of the marginal distribution functions and the correlation function.
• C)Copulas allow coupling of multivariate distributions where the marginals may be chosen from varied probability distributions.
• D)Copulas allow flexible modeling of the tails of the joint distribution.

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