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Calculate the haircut for the following transaction: An investor loans $120 million for $140 million in collateral. Express the answer as a decimal. For example,

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  1. Calculate the haircut for the following transaction: An investor loans $120 million for $140 million in collateral. Express the answer as a decimal. For example, write 60% as 0.60.
  2. What is the equity multiplier for thisaccount? Answer to one decimal place

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