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9. Suppose management is unwilling to permit losses exceeding 22% of a financial institutions capital to a particular sector? What is the concentration limit if
9. Suppose management is unwilling to permit losses exceeding 22% of a financial institutions capital to a particular sector? What is the concentration limit if management estimates that the amount lost per dollar of defaulted loans in this sector is 45 cents? What is the permitted losses could not exceed 25%? What if it was 16%
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