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The risk manager at a bank is reviewing its loan portfolio's default data. He finds that the 5year average default rate for the bank was

The risk manager at a bank is reviewing its loan portfolio's default data. He finds that the 5year average default rate for the bank was 4.76 percent of outstanding principal. In the event of a default, the bank has been able to recover an average of $0.35 per dollar outstanding. Based on this data, the bank's expected loss per $1.0 of loan principal is closest to:

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