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Which of the following statements concerning the measurement of operational risk is correct?
A
Economic capital should be sufficient to cover both expected and worst-case operational risk losses.
B
Loss severity and loss frequency tend to be modeled with lognormal distributions.
C
Operational loss data available from data vendors tend to be biased towards small losses.
D
The standardized approach used by banks in calculating operational risk capital allows for different beta factors to be assigned to different business lines.
