Financial Risk Manager Part 1

Financial Risk Manager Part 1

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A financial analyst is examining a mixed portfolio that includes 2,500 subprime mortgages and 800 prime mortgages. In this portfolio, it has been observed that 500 subprime mortgages and 64 prime mortgages have overdue payments. Given these details, calculate the probability that a mortgage randomly selected from the overdue ones in this portfolio is a subprime mortgage.