Use the following information for questions $3$ and $4$: Assume the following data:

Expected income on a loan of $$200,000$:

Interest Income rate on loans $=7\%$

Interest expense rate on deposit accounts that will fund the loan $=5\mathrm{.}5\%$

Overhead expense rate to administer the loans $=\mathrm{.}75\%$

Expected loss rate on the loan $=\mathrm{.}40\%$

Question $3$: If the "economic capital" is $$7,000$ what is the Risk Adjusted Rate of Return? Enter your answer to four decimal places. for example if the answer is $13\mathrm{.}56\%$ enter as $\mathrm{.}1356$

Question $4$: Should the bank make this loan if the expected hurdle rate is $15\%?$ Select either Yes or No

Group of answer choices

Yes

No