Question: I just need the answer to B, C, & D 4. a. Matrix Bank has compiled the following rating transition matrix on consumer loans Risk

I just need the answer to B, C, & D

4. a. Matrix Bank has compiled the following rating transition matrix on consumer loans Risk Grade at the End of the Year 1 2 3 4 Risk Grade At Beginning or Year 1 2 3 0.88 0.08 0.02 0.02 0.10 0.84 0.03 0.03 0.02 0.09 0.78 0.11 Which of the following statements accurately summarizes this data? A. Ten percent of grade two loans were upgraded during the year B Grade one loans have a higher probability of downgrade than grades two or three C Grade three loans have a higher probability of upgrade than grade two loans D Grade three loans have a higher probability of downgrade than grade two loans E. All of the above are valid statements b. What percent of grade 2 loans were downgraded to grade 4? c. What is the total percentage of all loans that received an upgrade? d. What is the total percentage of all loans that received a downgrade? Accessibility Unavailable C G ** o HO 1 6 8

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