When a Debt Security Is Issued and Its Performance Does

question 101

Multiple Choice

When a debt security is issued and its performance does not meet the expectations of the S&P rating agency,the debt rating may be placed initially on:

• A) credit hold.
• B) credit downgrade.
• C) credit watch.
• D) credit notice.

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Definitions:

Sample Size

The number of observations or units included in a sample, which can influence the reliability and validity of statistical results.

Type II Error

An error resulting from failing to reject an incorrect null hypothesis.

Sample Size

The number of observations or elements chosen from a population for the purpose of statistical analysis.

Significance Level

A threshold within which the p-value of a hypothesis test must fall for the result to be deemed statistically significant, typically set at 0.05 or 5%.