For a maturity of T = 1 year, let the default probability of a firm be p

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For a maturity of T = 1 year, let the default probability of a firm be p = 0.1. Define an indicator variable d = 1 if default occurs and d = 0 if default does not occur. 

(a) What is E(d)? 

(b) What is Var(d)?

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