Page 3 ECOM120 (2019) Question 4 Consider a bank with an initial asset size of 100. composed of 25 in cash and 75 granted to fund an indivisible risky loan. The loan return is 300 with probability 0.7, 70 with probability 0.2, and 20 with probability 0.1. Compute the probability of the bank's bankruptcy if the bank is funded with an amount 91 of deposits and 9 of equity (depositors obtain a zero net return for their deposits and never claim their deposits back until the loan returns have been realized). [25 marks]