2. Suppose there were two factors influencing the past default behavior of borrowers: the leverage or debt-assets ratio (D/A) and the profit margin ratio (PM). Based on past default(repayment) experience, the linear probability model is estimated as: PD=0.105(D/A.) -0.35(PM) Prospective borrower A has a D/A=0.65 and a PM=5%, and prospective borrower B has a D/A=0.45 and PM=1%. Calculate the prospective borrowers' expected probabilities of default (PD). Which borrower is the better loan candidate? Explain your