Which one of the following four statements regarding bank’s exposure to credit and default risk is INCORRECT?

Which one of the following four statements regarding bank’s exposure to credit and default risk is INCORRECT?
A . The more the bank diversifies its credit portfolio, the better spread its credit risks become.
B . In debt management, the value of any loan exposure will change typically in a fashion similar the same way that an equity investment can.
C . In debt management, the goal is to minimize the effect of any defaults.
D . Default risk cannot be hedged away fully, and it will always exist for the holder of the credit or for the person insuring against the credit or default event.

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Answer: B