Diversification: the Chance of a Loss with N Loans (BINOM.DIST)
This lesson is part of the course
In this lesson
You find how many defaults each portfolio size can absorb, calculate the probability of losing money with BINOM.DIST and the return in a bad year with BINOM.INV.
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Lessons in this course
- Loan Grades & Interest Rates: Build the Rate Card, Price Your Loans Locked
- Amortising Loan Cash Flows to the Investor: PMT and the Schedule Locked
- Expected Loss & Default-Adjusted Return by Grade Locked
- Net Yield after Platform Fees, Late Fees and Charge-Offs Locked
- Diversification: the Chance of a Loss with N Loans (BINOM.DIST) Locked
- Your Real Return: IRR and XIRR of a 50-Loan Portfolio Locked
- Recoveries & Collections: Why Timing Changes the Loss Locked
- Equity Crowdfunding: Outcome Distribution and Where the Value Comes From (Chart) Locked