1. Refer to the information below for a bank lender:

Administrative/operating cost 0.10%

Expected loss: 0.30%

Regulatory risk weight for investment grade loan: 75%

Regulatory risk weight for sub-investment grade loan: 150%

Portfolio weight for investment grade loan: 30%

Regulatory capital ratio (equity/RWA): 8.00%

Bank's funding cost: 4.00%

Bank's interest rate spread: 1.9%

Bank's required rate of return on equity: 20%

What is the economic return for the lender? Answer question in percentage without the percentage sign "%." Example: enter 10.50 for 10.50%; Do not enter "10.50%" or "0.1050."