Which of the following is true

A. The Gaussian copula model assumes that the defaults of different companies are independent.
B. The Gaussian copula model assumes that defaults, conditional on the value of a factor , are independent.
C. The Gaussian copula model assumes that the number of defaults is normally distributed.
D. None of the above.

B

The Gaussian copula model is analyzed by noting that defaults conditional on a factor are independent

Business

You might also like to view...

Which of the following statements is CORRECT?

a. All corporations other than non-profit corporations are subject to corporate income taxes, which are 15% for the lowest amounts of income and 35% for the highest amounts of income. b. The income of certain small corporations that qualify under the Tax Code is completely exempt from corporate income taxes. Thus, the federal government receives no tax revenue from these businesses. c. All businesses, regardless of their legal form of organization, are taxed under the Business Tax Provisions of the Internal Revenue Code. d. Small businesses that qualify under the Tax Code can elect not to pay corporate taxes, but then their owners must report their pro rata shares of the firm's income as personal income and pay taxes on that income. e. Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes. Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the income and stockholders were taxed again on the income when it was paid to them as dividends.

Business

Phase II of the supply chain design and facility location process is to ______.

A. determine the configuration of regional facilities B. design the supply chain C. determine location choices D. select potential sites for locating facilities

Business