The Return (Ri) on a Loan Can Be Measured as Follows

question 36

Multiple Choice

The return (Ri) on a loan can be measured as follows:

• A)AISi - E(Li), whereby E(Li) = (EDFi * LGDi)
• B)AISi - E(Li), whereby E(Li) = (EDFi / LGDi)
• C)AISi + E(Li), whereby E(Li) = (EDFi * LGDi)
• D)AISi + E(Li), whereby E(Li) = (EDFi / LGDi)

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