Question: Assume a borrower has a $ 3 5 0 , 0 0 0 loan balance. It is estimated that the borrower has a probability of

Assume a borrower has a $350,000 loan balance. It is estimated that the borrower has a probability of default of 2%. The projected loss-given-default is 35%. What is the expected loss amount? a. $24,500 b.0.7% c.0.007% d. $2,450

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