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Suppose that the assets of a bank consist of $200 million of retail loans. The PD is 1.05% and the LGD is 70%. a) Determine

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Suppose that the assets of a bank consist of $200 million of retail loans. The PD is 1.05% and the LGD is 70%. a) Determine the risk-weighted-asset (RWA) under the Basel 2 IRB approach. b) Determine the regulatory capital for credit risk

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