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A bank imposes the following: 1. Sets a basic rate of 6% on prospective loans and charges 4% risk premium. 2. Charges a 0.2% loan

A bank imposes the following: 1. Sets a basic rate of 6% on prospective loans and charges 4% risk premium. 2. Charges a 0.2% loan origination fee to the borrower. 3. Imposes an 8% compensating balance requirement. 4. Pays reserve requirements of 15% on demand deposits. Calculate the banks ROA on this loan

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