Question
Which of the following statements is TRUE? A. None of the listed options is TRUE. B. One advantage of using MPT for loans is that
Which of the following statements is TRUE?
A.
None of the listed options is TRUE.
B.
One advantage of using MPT for loans is that the returns on individual loans are normally distributed, meaning that most loans have unlimited upside returns and unlimited downside risks.
C.
One advantage of using MPT for loans is that the returns on individual loans are normally distributed, meaning that the upside returns are equal to the downside risks.
D.
One objection to using MPT for loans is that the returns on individual loans are not normally distributed, meaning that most loans have limited upside returns and long-tail downside risks.
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