Question: One disadvantage of using the Expected Default Frequency model (EDF) to model credit risk is that: a. It will reflect equity market volatility. b. It

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

a.

It will reflect equity market volatility.

b.

It links the equity and credit markets.

c.

It can be updated frequently.

d.

It is based upon option pricing models.

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