FRM Practice Test
FRM - Financial Risk Manager FRM FRM Credit Risk
Which of the following is the correct formula for Expected Loss (EL) in credit risk?
Select your answer
A
EL = PD × LGD × EAD
B
EL = PD × EAD / LGD
C
EL = LGD × EAD − PD
D
EL = PD + LGD + EAD
Hint
