Question
a. A portfolio contains 100 borrowers, each with a default probability of 1%. Assuming that defaults are independent, determine the probability of observing 1 default
a. A portfolio contains 100 borrowers, each with a default probability of 1%. Assuming that defaults are independent, determine the probability of observing 1 default in the portfolio.
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
