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Regulators calculate that DLC bank (see Section 2.2) will report a profit that is normally distributed with a mean of $0.6 million and a standard
Regulators calculate that DLC bank (see Section 2.2) will report a profit that is normally distributed with a mean of $0.6 million and a standard deviation of $2 million.How much equity capital in addition to that in Table 2.2 should regulators require for there to be a 99.9% chance of the capital not being wiped out by losses?
Please explain how you got your answer. im pretty sure the answer in 0.58 million
Table 2.2 Summary Balance Sheet for DLC at End of 2018 (\$ millions)
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