QUESTION 19 Manning Bank recently disbursed a $2 million loan, of which $1.6 million is currently outstanding. The probability of default over the next year is 1%, and the recovery rate is 70%. The standard deviation of loss given default (LGD) is 20%. The expected and unexpected losses (standard deviation) for the bank are Expected loss = $4,800; unexpected loss = $57,489 Expected loss = $11,200; unexpected loss = $57,489 Expected loss = $4,800; unexpected loss = $115,942 Expected loss = $11,200; unexpected loss = $115,942