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Problem. 03: Suppose management is unwilling to permit losses exceeding 20 per cent of an FI's capital to a particular sector. If management estimates that

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Problem. 03: Suppose management is unwilling to permit losses exceeding 20 per cent of an FI's capital to a particular sector. If management estimates that the amount lost per dollar of defaulted loans in this sector is 50 cents, find the concentration limit. Solution

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