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Basic Question 2 of 9

In its calculation the expected loss include:

I. default probability.
II. loss given default.
III. time value of money.
IV. risk premium.

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain expected exposure, the loss given default, the probability of default, and the credit valuation adjustment;

CFA® 2025 Level II Curriculum, Volume 4, Module 29.