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Suppose the expected income per dollar lent is 0.5 cents. The 99th percentile historic default rate for borrowers of this type is 7%. In the
Suppose the expected income per dollar lent is 0.5 cents. The 99th percentile historic default rate for borrowers of this type is 7%. In the case of default, the recovery rate is 40%. Then the risk-adjusted return on capital (RAROC) is?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
