Question: One advantage of using the Expected Default Frequency model (EDF) to model credit risk is that: a.It can be treated as a black box by

One advantage of using the Expected Default Frequency model (EDF) to model credit risk is that:

a.It can be treated as a black box by its users

b.Its estimates will reflect equity market volatility.

c.It provides daily default probabilities.

d.It uses book value of liabilities, which are audited and so reliable.

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