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Question
Matrix Bank has compiled the following migration matrix on consumer loans. Which of the following statements accurately summarizes this data?
A. Ten percent of grade two loans were upgraded during the year.
B. Grade one loans have a higher probability of downgrade than grades two or three.
C. Grade three loans have a higher probability of upgrade than grade two loans.
D. Grade three loans have a higher probability of downgrade than grade two loans.
E. All of the above.
Answer
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