Post Utme Wellspring University 2019 Commerce Question 24

Practice objective / multiple choice question 24 from the 2019 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2019 Commerce Objective / Multiple Choice
Question 24 POST_UTME_WELLSPRING_UNIVERSITY • 2019 • COMMERCE • objective

A bank has a loan portfolio of ₦10 billion and wants to calculate its expected loss using the Expected Loss (EL) model. If the probability of default is 5% and the loss given default is 50%, calculate the expected loss.

Answer Options

Correct Answer A. ( EL = 10,000,000,000 imes 0.05 imes 0.50 )
B. ( EL = 10,000,000,000 imes 0.05 + 0.50 )
C. ( EL = 10,000,000,000 imes 0.05 div 0.50 )
D. ( EL = 10,000,000,000 imes 0.05 imes 0.50 imes 0.50 )
Correct Answer
A
Correct Option:
( EL = 10,000,000,000 imes 0.05 imes 0.50 )

About This Question

This is Post Utme Wellspring University 2019 Commerce Question 24. It is one of the objective questions from the 2019 Post Utme Wellspring University Commerce examination.

View More Post Utme Wellspring University 2019 Commerce Questions More Post Utme Wellspring University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support