I Simulations by Moody's Analytics have shown that EDF models outperform both Z score-type models and S&P rating changes as predictors of corporate failure and distress. II MPT models allow a FI to diversify sizeable amounts of credit risk exposure by taking advantage of its size III A major advantage of Altman's Z-Score model to measure the credit risk of a customer is the stability of the coefficient weights over time IV The variance of returns of a portfolio of loans normally is equal to the arithmetic average of the variance of returns of the individual loans. 2. (8 points) Which of the above statements are true? (a) I only (b) I and II only (c) I and III only (d) II and III only (e) IV only