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Effective Use of Diversification Principles Allows an FI to Reduce

question 77

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Effective use of diversification principles allows an FI to reduce the total default risk in a portfolio.


Definitions:

Default Judgement

A judgment entered by a court for the plaintiff when the defendant fails to respond to a legal action.

Memorandum of Law

A detailed written document prepared by an attorney to present legal arguments and precedents in support of a case.

Motion to Dismiss

A legal request asking a court to dismiss a case mainly on the grounds that even if all facts claimed are true, there is no legal basis for a lawsuit.

Affidavit

A written statement confirmed by oath or affirmation, used as evidence in court.

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