PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition 8008 Question # 22 Topic 3 Discussion

PRMIA PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition 8008 Question # 22 Topic 3 Discussion

8008 Exam Topic 3 Question 22 Discussion:
Question #: 22
Topic #: 3

Under the KMV Moody's approach to credit risk measurement, how is the distance to default converted to expected default frequencies?


A.

Using a proprietary database based on historical information


B.

Using migration matrices


C.

Using a normal distribution


D.

Using Monte Carlo simulations


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