Management of credit risk is achieved through diversification effect by combining numerous loans in a portfolio. t/f

The correct answer is True.

Explanation:

Credit risk is the possible loss that an economic agent assumes as a result of breach of the contractual obligations incumbent upon the counterparties with which it relates. The concept is usually related to financial institutions and banks, but also affects companies and organizations in other sectors.

For its part, risk diversification is a fundamental principle of investment and financial markets. It consists of investing in a wide variety of assets to reduce the total risk of a portfolio or decrease its volatility.

answer; i believe the correct answer is (tall); ///good luck