Answer: Mean = 0.85, standard deviation = 0.84

Letting n equal the number of bonds in the portfolio and p equal the individual default probability, the formulas to use are as follows: Mean = E(K) = n × p = 5 × 0.17 = 0.85. Variance = Variance(K) = n × p × (1-p) = 5 × 0.17 × (0.83) = 0.7055 Standard deviation = sqrt(0.7055) = 0.8399. **Section:** Quantitative Analysis **Reference:** Global Association of Risk Professionals. Quantitative Analysis. New York, NY: Pearson, 2019. Chapter 3. Common Univariate Random Variables. **Learning Objective:** Distinguish the key properties and identify the common occurrences of the following distributions: uniform distribution, Bernoulli distribution, binomial distribution, Poisson distribution, normal distribution, lognormal distribution, Chi-squared distribution, Student's t, and F-distributions.

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