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You read about the challenged economic outlook for Singapore in 2023. The bank expects its trade book size to contract by 3.00%. The first-year probability

You read about the challenged economic outlook for Singapore in 2023. The bank expects its trade book size to contract by 3.00%. The first-year probability of default is forecast to rise to 0.55%. (c) Determine the total $ change in the bank's trade portfolio expected loss. Conclude whether the risk has increased or decreased.

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