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A manager decides not to lend to any firm in sectors that generate losses on that part of the loan portfolio in excess of 5%

A manager decides not to lend to any firm in sectors that generate losses on that part of the loan portfolio in excess of 5% of equity.

If the average historical losses in the retail sector total 7% per dollar of defaulted loans, the maximum loan a manager can lend to a firm in this sector is ___% of total capital (rounded to two decimal places).

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