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If a Fl holds the following loans in its loan portfolio, loan X and Y. The proportion of the loan portfolio invested in X is
If a Fl holds the following loans in its loan portfolio, loan X and Y. The proportion of the loan portfolio invested in X is 60% and the rest is invested in Y. If the risk of these loans is 7% and BX respectively, what is the risk of the bank's loan portfolio if loan returns have correlation of -0.849 a 2.64% b. 3.22% 0 230% od 808% e. None of the above Clear my choice
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