#4. Based on the risk class and probability of default (PD) determined in Question #3, assume that loss-given-default (LGD) is in Class 4, using Table 5.4 (on Textbook page 94), we can find that the expected loan loss is %. (2 points) #4. Based on the risk class and probability of default (PD) determined in Question #3, assume that loss-given-default (LGD) is in Class 4, using Table 5.4 (on Textbook page 94), we can find that the expected loan loss is %. (2 points)