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Which of the following is true about the standardized measurement method for the calculation of market risk under Basel III?
A
Tier 3 capital is eligible to support market risks calculated by the standardized approach in Basel III
B
The capital charge is an arithmetic sum of charges across categories, including interest rate risk, equity position risk, foreign exchange risk, commodities risk, and options risk
C
Banks have the flexibility to use IMA or SA method to calculate market risk capital.
D
The standardized measurement method for the calculation of market risk under Basel Accord takes the benefits of diversification into account.
