CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

True or false? It is possible that the default risk on a debt is high but its credit risk is low.
Correct Answer: True

It's possible that the default risk (the likelyhood of an event of default) is high, but the expected loss is low so its credit risk is low. e.g. a debt with a high-value collateral.

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