Affan Bank's return on equity (ROE) is targeted at 20% for year 2021. To achieve this, the bank must extend $100 billion financing at 7% profit rate per annum funded by deposit funds at 3% yield per annum. Other expenses including overheads = $1 billion and provisions = $1 billion. Given capital = $10 billion, answer the following questions: a) Estimate the bank profits for 2021. b) Given that the risk-weight = 50%, determine Basel 3 minimum capital requirement. c) Determine the bank's actual risk-weighted capital ratio (RWCR). d) The bank feels it can beat the targeted ROE by extending more financing at a higher profit rate of 12% per annum. To do so it will use wholesale funds at 5% per annum. Is this a viable business/risk strategy? e) The above business strategy however was not able to outperform the ROE target. What could be the contributing factors to this? Affan Bank's return on equity (ROE) is targeted at 20% for year 2021. To achieve this, the bank must extend $100 billion financing at 7% profit rate per annum funded by deposit funds at 3% yield per annum. Other expenses including overheads = $1 billion and provisions = $1 billion. Given capital = $10 billion, answer the following questions: a) Estimate the bank profits for 2021. b) Given that the risk-weight = 50%, determine Basel 3 minimum capital requirement. c) Determine the bank's actual risk-weighted capital ratio (RWCR). d) The bank feels it can beat the targeted ROE by extending more financing at a higher profit rate of 12% per annum. To do so it will use wholesale funds at 5% per annum. Is this a viable business/risk strategy? e) The above business strategy however was not able to outperform the ROE target. What could be the contributing factors to this