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Question
A bank's international loan diversification is enhanced if the historic realized rates of return on loans from loan applicant, Country A, havea. a high positive correlation with prior loans from Country A.
b. a high positive correlation with the loan returns on the bank's international loan portfolio.
c. a negative correlation with the loan returns on the bank's international loan portfolio.
d. a very low negative correlation with the returns on U.S. Treasury bonds.
Answer
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