CFA Practice Question

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CFA Practice Question

If John's credit score is 4 while Tom's credit score is 8, we can conclude (select all correct statements):

I. John is more risky than Tom.
II. Tom is more risky than John.
II. John is twice as risky as Tom.
II. Tom is twice as risky as John.
Correct Answer: I

The higher the score, the less risky the borrower. However, credit scoring only orders borrowers' riskiness from highest to lowest.

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