In the Moody's Analytics Portfolio Model,the Expected Return on a Loan

question 32

Multiple Choice

In the Moody's Analytics portfolio model,the expected return on a loan is the

• A)annual all-in-spread minus the expected loss on the loan.
• B)annual all-in-spread minus expected probability of the borrower defaulting over the next year.
• C)annual all-in-spread minus the loss given default.
• D)the interest and fees paid by the borrower minus the interest paid by the FI to fund the loan.

---

Definitions:

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner, with the goal of reaching a resolution.

Accommodation

The process of adjusting or adapting oneself to different conditions, environments, or circumstances.

Avoidance

Conflict management style that involves backing off and trying to sidestep conflict.

Paraphrasing

Restating someone else’s ideas or thoughts in one's own words, often to clarify meaning or demonstrate understanding.