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A portfolio manager holds five bonds in a portfolio and each bond has a 1-year default probability of 17%. The event of default for each of the bonds is independent. What is the mean and standard deviation of the number of bonds defaulting over the next year?
A
Mean = 0.15, standard deviation = 0.71
B
Mean = 0.85, standard deviation = 0.84
C
Mean = 0.85, standard deviation = 0.71
D
Mean = 0.15, standard deviation = 0.84