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Assume the following data Loan Portfolio Loan Type Loan Portfolio Mortgage $ 21,000,000 Construction $ 37,500,000 Commercial $ 100,000,000 Industrial $ 62,500,000 Consumption $29.000.000 Total
Assume the following data Loan Portfolio Loan Type Loan Portfolio Mortgage $ 21,000,000 Construction $ 37,500,000 Commercial $ 100,000,000 Industrial $ 62,500,000 Consumption $29.000.000 Total $ 250,000,000 Loss $5,000,000 3. The relative severity for the commercial loan portfolio is to. a. 24% c.8% b. 17% d.5% 4. The relative severity for the mortgage loan portfolio is to a. 24% c.8% b. 17% d.5% 5. For the total portfolio the relative severity is a. 13% c.5% b. 8% d.2% 8. During the years 2013, 2014, 2015, 2016 and 2017, 5, 7,8,10 and 12 loan events were recorded that were charged to loss respectively. The amount of the recognized losses for each year amounts to $ 2,500,000, $ 4,000,000, $ 4,500,000, $3,000,000 and $5,000,000 respectively. The relative frequency for 2016 was to. a. 23.81% C.16.67% b. 19.05% d. 11.90% 9. Assuming the same data from the previous problem, the absolute frequency for 2015 was to. a. 0.1190 c.8 b. 0.1905 d.12 10. During the years 2013, 2014, 2015, 2016 and 2017, 5, 6,7,10 and 12 loan events were recorded that were charged to loss respectively. The average frequency for this time period would be a. 9.4 d.7.4 b. 8.4 e.7.0 C. 8.0 17. In the following regression equation: y = 112933 + 0.0192x, the slope is to a. 112933 c.1.92% b. 1.92% d. 112933x Assuming the following data: Historical data of the Loan Reserve Years Portfolio of Loans (X) Charged at Loss (Y) 2010 $ 10,000,000 $ 200,000 2011 $ 12,500,000 $ 300,000 2012 $ 15,000,000 $ 390,000 2013 $ 17,500,000 $ 470,000 2014 $ 20,000,000 $ 600,000 2015 $ 22,500,000 $ 680,300 2016 $ 30,000,000 $ 690,000 2017 $ 33,000,000 $ 730,000 2018 $ 40,000,000 $ 800,000 18. You are the Chief Risk Officer of ABC, International Bank. In 2019 the loan portfolio amounted to $ 45,000,000 and the officer wants to estimate the losses for that portfolio based on past experience. Using the equation described in Problem 17, the amount of the losses for 2019 would be to. a. $ 693,333 C. $976,933 b. $ 758,125 d.$978,933 19. In Problem 18, R2 is 0.8568, which implies a model to. a. Explanatory of the Y-effect of the slope. b. Explanatory of the effect on X of the variable Y. c. Explanatory of the effect on X of the intercept. d. Explanatory of the effect on Y of X. Losses in the loan portfolio of ABC, International Bank are normally
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