using relevant examples in the risk and insurance industry explain the following terms a) probability of...

Question

Question

using relevant examples in the risk and insurance industry explain the following terms

a) probability of default

b) exposure at default

c) loss given default

Answer 1

Answer #1

Let us take the example of a credit card company.

The Expected Loss is defined as PD × EAD × LGD.

Please do rate me and mention doubts ,if any, in the comments section .

Answer 2

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