Question: Exercise 17 define credit risk. What are the two types of credit risks. Which credit risk can be diversified and which cannot? Explain (Chapter 19)

Exercise 17 define credit risk. What are the two types of credit risks. Which credit risk can be diversified and which cannot? Explain (Chapter 19) Exercise 18 Identify Technology or operational risk in the following cases (Chapter 19) a) If ATM machines of bank of America show a shut down across US and customers cannot withdraw or deposit cash? What type of risk is that? b) If a bank invests heavily into artificial intelligence, however, the cost of investing in this new technology do not produce cost savings for the bank. What type of risk is faced by the bank

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