The credit officer of a debt fund is reviewing CRE loans on their balance sheet. A $40 million loan is stressed with a 20% probability of default and a severity of loss estimated to be 40% in the event of default. What is the expected loss for the loan? Explain your work. Another loan has an estimated 30% probability of default and 50% loss severity. Which loan would be of greater concern to the credit officer purely on expected loss calculations?