= A manager decides not to lend to any firm in sectors that generate losses in excess
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= A manager decides not to lend to any firm in sectors that generate losses in excess of 5 percent of capital. If the average historical losses in the automobile sector total 8 percent, what is the maximum loan a manager can lend to a firm in this sector as a percentage of total capital?
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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 9780077211332
6th Edition
Authors: Anthony Saunders, Marcia Cornett
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