Question: Any model that seeks to estimate an efficient frontier for loans, and thus the optimal proportions in which to hold loans made to different borrowers,

Any model that seeks to estimate an efficient frontier for loans, and thus the optimal proportions in which to hold loans made to different
borrowers, needs to determine and measure the
expected return of the entire loan portfolio.
expected return on each loan to a borrower.
correlation of default risks between loans made to borrowers.
risk of each loan made to a borrower.
All of the options.
Any model that seeks to estimate an efficient frontier for loans,

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