CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

A change in the probability of default will change:

I. Expected exposure
II. LGD
III. POD
IV. Discount factors
V. CVA per year
Correct Answer: III and V

Note that POD is the probability of default, which is assumed to change. It does not change expected exposure, LGD or discount factors.

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