TransUnion Is Aware That You Are One Month Late on Your

question 27

Multiple Choice

TransUnion is aware that you are one month late on your car payment,while Equifax has not yet uncovered this information.Which of the following statements is correct?

• A)TransUnion will have a lower credit score for you than Equifax.
• B)Both companies will have the same credit score because of the grace period.
• C)Being late one month on a car payment will not affect your BEACON score.
• D)Both companies will have the same credit score because car payments are backed by collateral.

---

Definitions:

Sharpe Measure

A metric for calculating risk-adjusted return, measuring excess return per unit of deviation in an investment.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a gauge of the overall health of the US stock market.

Sharpe Measure

A metric used to assess the risk-adjusted return of an investment, comparing its excess returns to the volatility experienced.

Residual Standard Deviation

A statistical measure of the amount of variance in investment returns not explained by the beta in the Capital Asset Pricing Model (CAPM).