Question: Let's consider a loan portfolio with 5 different loans. Loan Information: Loan 1: Loan Amount: $50,000; PD (Probability of Default): 2%; LGD (Loss given default):

Let's consider a loan portfolio with 5 different loans.

Loan Information:

Loan 1: Loan Amount: $50,000; PD (Probability of Default): 2%; LGD (Loss given default): 30%

Loan 2: Loan Amount: $100,000; PD: 4%; LGD: 40%

Loan 3: Loan Amount: $150,000; PD: 5%; LGD: 20%

Loan 4: Loan Amount: $200,000; PD: 3%; LGD: 50%

Loan 5: Loan Amount: $300,000; PD: 1%; LGD: 60%

Assuming that the Exposure at Default (EAD) is equal to the loan amount for all loans, The expected loss for this portfolio is?

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