A Hypothetical Rating Migration,or Transition Matrix,reflects All of the Following

question 47

Multiple Choice

A Hypothetical Rating Migration,or Transition Matrix,reflects all of the following EXCEPT

• A)rating at which the portfolio ended the year.
• B)transition probabilities.
• C)rating at which the portfolio of loans began the year.
• D)future migration expected in the portfolio.

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Definitions:

Positively Sloped

Characterizes a line or curve on a graph that moves upward as one moves from left to right, indicating a direct relationship between two variables.

Negatively Sloped

Describes a downward trend in a graph, indicating an inverse relationship between two variables, such as price and demand.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.

Producer Surplus

The discrepancy between the price sellers are ready to accept for an item and the price they actually receive.