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Basic Question 4 of 5
In its calculation, the expected loss include ______.
II. loss given default
III. time value of money
IV. risk premium
I. default probability
II. loss given default
III. time value of money
IV. risk premium
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Learning Outcome Statements
explain how the phase of the business cycle affects credit spreads and the performance of credit-sensitive fixed-income instruments;
explain how the characteristics of the markets for a company's products affect the company's credit quality;
CFA® 2025 Level II Curriculum, Volume 6, Module 37.