#3. A borrower has these characteristics: E/A=0.5; Current Ratio 3%, Management Index is rated Average". Using Table 5.2 (on Textbook page 92), determine the weighted average risk score, risk class, and probability of default (PD) for a borrower by completing the following table. (13 points) Rating Class Weighted Score Weighted Average Risk Score Calculation: Criteria Weight Solvency (E/A) 0.3.10 Liquidity (Current Ratio) 0.2 1 Repayment (CDRC)) 0.2 Earnings (ROA) 0.2 Management Index (Operating Ratio) 0.1 Weighted Average Risk Score Risk Class Probability of Default (PD) % #3. A borrower has these characteristics: E/A=0.5; Current Ratio - 1.1; CDRC = 0.75; ROA= 3%; Management Index is rated "Average". Using Table 5.2 (on Textbook page 92), determine the weighted average risk score, risk class, and probability of default (PD) for a borrower by completing the following table. (13 points) Rating Class Weighted Score Weighted Average Risk Score Calculation: Criteria Weight Solvency (E/A) 0.3 10 Liquidity (Current Ratio) 0.2 11 Repayment (CDRC)) 0.2 Earnings (ROA) 0.2 Management Index (Operating Ratio) 0.1 Weighted Average Risk Score Risk Class Probability of Default (PD) %