Consider a portfolio of m= 1000 equally rated credit risks. Assume that for every obligor the exposure is e, = 1 million pounds, for i = 1,..., 1000 and the default probability is p = 1% for i=1,..., 1000. Calculate the expected value and the standard deviation of the portfolio loss in each of the following situations. (a) The loss given defaults are deterministic 8, = 0.4 for every i = 1,...1000, and defaults happen independently. (b) The loss given defaults are deterministic 6, = 0.4 for every i = 1,...1000, let Y, be the default indicator of obligor i and assume that p(Y..Y) = 0.005 for every i j. (c) How would you comment on the financial meaning of these results?