Question $5$

Use the following information for questions $5$ and $6.$

Borrower Rating

A

$$50$ million

$9\%$

$1\mathrm{.}75\%$

B

$$30$ million

$12\%$

$2\mathrm{.}10\%$

What is the financial institution's expected return on its loan portfolio?

$10\mathrm{.}86\%$

$8\mathrm{.}10\%$

$10\mathrm{.}13\%$

$21\mathrm{.}00\%$

$10\mathrm{.}50\%$