As part of measuring unobservable default risk between borrowers, the Moody's Analytics model decomposes asset returns into
A. credit risk and market risk.
B. systematic risk and unsystematic risk.
C. market risk and sovereign risk
D. regional risk and maturity risk.
E. systematic risk and default risk.
Ans: B. systematic risk and unsystematic risk.
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The rate of interest agreed upon contractually charged by a lender or promised by a borrower is the ________ interest rate
A) effective B) nominal C) discounted D) continuous
Which organization has the power to set accounting rules for companies whose stock is publicly-traded in the U.S. stock markets, but has delegated its power to another organization?
A) International Accounting Standards Board (IASB) B) Financial Accounting Standards Board (FASB) C) General Association of Accounting Practitioners (GAAP) D) Securities and Exchange Commission (SEC)