1.) Choose the best statement. The higher the duration of the loan, all else equal,

a.) and the lower the current level of interest rate, the higher the RAROC.

b.) and the lower the expected change in the risk premium, the lower the RAROC.

c.) and the higher the expected change in the risk premium, the higher the RAROC.

d.) and the higher the loan amount, the lower the RAROC.

e.) and the lower the loan amount, the lower the RAROC.