Question: 2.The way to test Mertons model, you need to compare the model value of ___________ with the observed value from the data. a. Volatility of

2.The way to test Mertons model, you need to compare the model value of ___________ with the observed value from the data.

a.

Volatility of the firm's assets
b.

Credit Spread
c.

Recovery
d.

Risk-neutral probability of default

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