Each of the following is true about the estimation of default probabilities EXCEPT

Group of answer choices

For a risk measurement application such as scenario analysis, risk-neutral probabilities should be used; for pricing applications such as the credit value adjustment (CVA), real-world probabilities should be used.

If we apply the Merton framework, where modeling default is transformed into assessing the future distribution of the firm's value and the barrier where default will occur, this is also a real-world default probability.

If we are examining historical data and use past default experience to predict future default likelihood ("historical data approach"), this is a real-world default probability.

If we estimate default probability from credit spreads observed in the market, this is a risk-neutral default probability.