Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A)If many loans have negative correlations of returns the sum of the individual credit risks of loans viewed independently exactly estimates the risk of the whole portfolio.
• B)If many loans have negative correlations of returns the sum of the individual credit risks of loans viewed independently underestimates the risk of the whole portfolio.
• C)If many loans have positive correlations of returns the sum of the individual credit risks of loans viewed independently overestimates the risk of the whole portfolio.
• D)If many loans have negative correlations of returns the sum of the individual credit risks of loans viewed independently overestimates the risk of the whole portfolio.

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Definitions:

Orientation Programs

Structured initiatives designed to help new employees acclimate to their roles and the company culture, policies, and expectations.

Training Role

The responsibilities involved in designing, implementing, and evaluating training programs to improve employee skills and knowledge.

Competencies

Set of skills, knowledge, abilities, and attributes that are required for success in a particular job or professional role.

Competitive Advantage

Describes a company's ability to perform in one or more ways that competitors cannot or will not match, thus creating more value for its customers.