a portfolio manager holds three bonds in one of his portfolio and each bond 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 if 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 = 045, Variance = 0.32 

D- Mean = 0.15, Variance = 0.38

Answer rating: 100% (QA)

Sollution The answer is letter B Mean 045 Variance 038 Stepbyst... View the full answer