In our risk rating model example, we looked at a scenario that improved Atlas' risk rating from "Moderate Risk" to "Low Risk". As a result, the RAROC for each of its loan facilities increased significantly. Which of the following changes to the inputs in the RAROC calculation, in response to the improved risk rating, did NOT contribute to this increase in the RAROC? A decrease in capital ratio A decrease in default probability A decrease in loss given default A decrease in capital requirement

In our risk rating model example, we looked at a scenario that improved Atlas' risk rating from "Moderate Risk" to "Low Risk". As a result, the RAROC for each of its loan facilities increased significantly. Which of the following changes to the inputs in the RAROC calculation, in response to the improved risk rating, did NOT contribute to this increase in the RAROC? A decrease in capital ratio A decrease in default probability A decrease in loss given default A decrease in capital requirement

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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