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With respect to the KMV model, which of the following statement(s) is(are) true? Select one or more: a. Expected Default Frequency correlates negatively with the
With respect to the KMV model, which of the following statement(s) is(are) true? Select one or more: a. Expected Default Frequency correlates negatively with the distance-to- default. b. The KMV uses the observed market values of assets to predict borrowers' probabilities of default. C. Distance-to-default is an ordinal measure. d. The larger the standard deviations of market asset values, the lower the probabilities of default of a borrower. e. None of the above
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