Essay About Model Vs S&P And Factors Debt Service Ratio

Introduction to Case Study
Intro
Our model VS S&P
HOW? -> PICK 2 countries , greatest credit rating difference
Discuss WHY
1. do regressions on each factor => how the factor affect S&Ps overall rating
look into how each single factor
By doing this=> WE FOUND OUT : just one factor not enough to Rate
PROVE:
the model predicted credit rating (the red dot) and the actually S&P rating (the blue dot).
FINDINGS : X only consider one factor to attribute sovereign risk
2 WHAT WE USED?
6 factors Debt service ratio, Export, Import, GDP growth rate, GDP per capita and money growth rate
6 factors Regression result
POSITVE related sovereign risk include x3
that debt service ratio, import ratio and money growth rate
NEGAITVE related sovereign risk include x3
export ratio, GDP growth rate and GDP per capita
higher the ratio, lower the risk and thus, higher the credit rating
OUR MODEL shows money growth rate have the highest coefficient in the model
GIVE EG increase money growth 1, risk increase 1.03
OUR MODEL shows debt service ratio have the lowest coefficient in the model
Before expiration, the time value of an in the money call option is always
Answer
equal to zero.
positive.
negative.
equal to the stock price minus the exercise price.
None of these is correct.
1 points
Question 2