Question: One disadvantage of using the Expected Default Frequency model (EDF) to model credit risk is that: a. It is based upon option pricing models. b.

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

a.

It is based upon option pricing models.

b.

It can be treated as a black box.

c.

It can be updated frequently.

d.

It links the equity and credit markets.

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