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Assume that the loan exposure is $8,000,000, the spread is 1 %, fees are 0.5%, costs are $80,000, Loan Duration is 9 years, and the
Assume that the loan exposure is $8,000,000, the spread is 1 %, fees are 0.5%, costs are $80,000, Loan Duration is 9 years, and the change in credit risk premium is 5%.
- Calculate the Risk Adjusted Return on Capital
- Explain why risk-adjusted return is a more accurate measure compared to basic return
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Investment Theory And Risk Management
Authors: Steven Peterson
1st Edition
9781118129593
