Question: When Stress testing a credit portfolio: a. Consider the impact of extreme yet possible events. b. Consider the impact of extreme and improbable events. c.

When Stress testing a credit portfolio:

a.

Consider the impact of extreme yet possible events.

b.

Consider the impact of extreme and improbable events.

c.

You consider the implications of small changes in the day to day credit cycle.

d.

You ensure that the firm has sufficient economic capital to protect the firm against most reasonable events.

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