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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 1.6CE

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