Fall 2015 Q20a
From where in the question can well tell the Total asset is not impacted in the adverse scenario?
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From where in the question can well tell the Total asset is not impacted in the adverse scenario?
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I thought this was a hard problem because there was nothing like it in the reading or in previous exam problems. In case you haven't seen this other forum post, take a look here:
That might answer your question. If it doesn't, let me know and we can discuss further. (In general, the adverse scenario starts with the same conditions as the base scenario. That's why the solution started with the 13,500 in assets and then adjusted it downwards for the adverse scenario.)