Nittany Lion Bank has the following balance sheet (in $m ), with the risk weights in parentheses. Nittany Lion Bank also has the following off-balance sheet item: A 330 million in performance-related standby letter of credit (SLC) to a public corporation with a conversion factor of 50%. Simplifying assumptions: - Risk weights of all off-balance sheet items are equal to 100%. - Regulator's CET 1 ratio for adequate capitalization is 4.5%, Tier 1 ratio is 6.0%, and Total capital ratio is 8.0%. - There are no restrictions on how much subordinated debt and reserves you can count as Tier 11 capital. - Items that do not show up on the balance sheet (e.g. Goodwill) have a value of zero. Suppose Nittany Bank issued the minimum amount of equity that satisfies the capital requirements. Based on the information above, how should the bank utilize this newly issued capital? The bank should invest the newly bwed capital in conwumer loans. The bank should keep the newly issued capital as cash. The bank should invest the newly iswed capital in OECD interbank deposits The bank should invest the newly iswed capital in morteage loans. The bank should invest the newly issued capital in the asset thst generates the highest returns