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A portfolio manager holds three bonds in one of his portfolios and each has a 1-year default probability of 15%. The event of default for each of the bonds is independent. What is the mean and variance of the number of bonds defaulting over the next year?
A
Mean = 0.15, variance = 0.32
B
Mean = 0.45, variance = 0.38
C
Mean = 0.45, variance = 0.32
D
Mean = 0.15, variance = 0.38