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#1. Find the expected loss (EL) of a borrower who has a probability of default (PD) of 3% and a loss-given-default (LGD) of 50%. (Hint:

#1. Find the expected loss (EL) of a borrower who has a probability of default (PD) of 3% and a loss-given-default (LGD) of 50%. (Hint: Use the formula EL rate PD x LGD on Textbook page 91) (4 points)

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