Question

Expected Loss (E

  • L in credit risk refers to the anticipated financial loss from a borrower's default . Which of the following is NOT one of the components required for credit risk quantification under the EL model ?
A Probability of Default (PD)
B Loss Given Default (LGD)
C Exposure at Default (EAD)
D Credit Score before Default (CSD)
E All are part of the EL model
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