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Scott is a credit analyst with one of the credit rating agencies in India. He was looking in Oil and Gas Industry companies and has presented brief financials for following 4 entities:

From the data given below, calculate the standard deviation of the credit portfolio assuming that facility's exposure is known with certainty, customer defaults and LGDs are independent of one another and LGDs are independent across borrower(s).
Credit Facility A - Loss Equivalent Exposure of $60m, expected Default frequency of 1.5%, loss given default of 30%, Std Deviation of LGD - 5% and Correlation to portfolio - 0.10 Credit Facility B - Loss Equivalent Exposure of $25m, expected Default frequency of 2%, loss given default of 12%, Std Deviation of LGD - 12% and Correlation to portfolio - 0.45 Credit Facility C - Loss Equivalent Exposure of $15m, expected Default frequency of 5%, loss given default of 85%, Std Deviation of LGD - 18% and Correlation to portfolio - 0.22
A. US$6.88 million
B. US$ 1.16 million
C. US$ 0.10 million
D. US$ 1.66 million
Answer: B

NEW QUESTION: 2
After programming-a moderate to high intensity exercise program for a new 38-year-old client, the ACE
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suggestions. The trainer should:
A. Require the client to follow the original program until the next fitness test.
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D. Enthusiastically acknowledge the client's efforts and explain that they will achieve their goals faster.
Answer: B

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B. 변화는 약점을 통제합니다.
C. 생산이 약점을 통제합니다.
D. 인증은 취약점을 제어합니다.
Answer: B

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