A bank classifies borrowers as high risk or low risk and 15

Reference no: EM13641044

A bank classifies borrowers as "high risk" or "low risk," and 15% of ots loans are made to those in the "high risk" category. Of all its loans, 5% are in default and 40% of those in default are to high-risk borrowers. What is the probability that a high-risk borrower will default?

Reference no: EM13641044

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