Question: Under the Expected Default Frequency model ( EDF ) , Distance to default of a firm is increased by _ _ _ _ _ _

Under the Expected Default Frequency model (EDF), Distance to default of a firm is increased by ________________ and decreased by ______________
Question 3Answer
a.
Asset value, firm debt.
b.
Asset value, asset volatility.
c.
Firm debt, asset volatility.
d.
Firm debt, time to maturity.
e.
Asset volatility, asset value.

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