Schweser book2, p416

FRM
#1

Should UL = AE x SQRT(EDF x sigma_LGD^2 + LGD^2 x sigma_EDF^2) be UL = AE x SQRT(EDF^2 x sigma_LGD^2 + LGD^2 x sigma_EDF^2) ???

#2

don’t think so, no.

#3

You are right. Thanks.