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Question
A weakness of migration analysis to evaluate credit concentration risk is that the
A. information obtained for this analysis is usually ex-post (i.e. after the fact).
B. information obtained for this analysis is ex-ante (i.e. before the fact).
C. analysis makes use of historical data classified only by industries.
D. analysis makes use of historical data classified by individual firms.
E. migration of firms may only be temporary.
Answer
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