
Financial Risk Manager Part 1
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In a bond portfolio where the annual number of defaults follows a Poisson distribution with an average rate of 4 defaults per year, and assuming that defaults occur independently of each other, calculate the probability that the portfolio will experience at most one default in the next year.
In a bond portfolio where the annual number of defaults follows a Poisson distribution with an average rate of 4 defaults per year, and assuming that defaults occur independently of each other, calculate the probability that the portfolio will experience at most one default in the next year.
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