- CFA Exams
- CFA Exam: Level II 2021
- Study Session 17. Portfolio Management (2)
- Reading 46. Economics and Investment Markets
- Subject 4. Credit Premiums and the Business Cycle
CFA Practice Question
In its calculation, the expected loss include ______.
II. loss given default
III. time value of money
IV. risk premium
I. default probability
II. loss given default
III. time value of money
IV. risk premium
Correct Answer: I and II
The present value of the expected loss includes all four factors.
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