Imagine a bank that has raised $400M in funds (total funding raised) and can invest these funds in a low-risk or a high-risk strategy. For simplicity, there are only two dates in this example (today and tomorrow). The lender invests its funds today and the return on these strategies are delivered tomorrow (cash flows only take place tomorrow). The lender does not discount tomorrow's cash flows (independently of their risk). In the high-risk strategy, the assets (loans) generate a return equal to 6% with probability 90% and there is a 10% chance that the assets generate a return equal to 30%. In the low-risk strategy, the assets (loans) always generate a return equal to 4%. Suppose that 88% of the funds raised by the lender were deposits paying no interest. The deposits are insured by the deposit insurance fund. Consider the statements below about the value of the lender's equity today under these two strategies. Which of these statements is correct? The value of the equity under the high-risk strategy is equal to the value of the equity under the low-risk strategy. The value of the equity under the high-risk strategy is $8.8M lower than the value of the equity under the low-risk strategy. The value of the equity under the high-risk strategy is $8.0M higher than the value of the equity under the low-risk strategy. The value of the equity under the high-risk strategy is $0.8M higher than the value of the equity under the low-risk strategy. The value of the equity under the high-risk strategy is $6.4M lower than the value of the equity under the low-risk strategy