The Term 'Loan Rating' Refers to the Process of Individual

question 48

Multiple Choice

The term 'loan rating' refers to the process of individual loans being given credit rating by:

• A) rating agencies dependent on the lender's credit assessment.
• B) lenders dependent on a credit rating agency's credit assessment
• C) lenders independent of a credit rating agency's credit assessment.

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Definitions:

Mean

The mean is the average of a set of numerical values, calculated by summing all the values and dividing by the count of the values.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values from the mean.

Mean

The average value of a set of numbers, calculated by dividing the sum of these numbers by the count of numbers in the set.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, calculated as the square root of the variance.