Question
Using the following information, calculate the risk-adjusted return. Loan Amount: $10,000,000 Interest Rate: 5.0% Cost of Funds: 2.75% Fees: 10,000 Expenses: 5,000 Loss Given Default
Using the following information, calculate the risk-adjusted return.
Loan Amount: $10,000,000 Interest Rate: 5.0% Cost of Funds: 2.75% Fees: 10,000 Expenses: 5,000 Loss Given Default Rate: 25% Default Probability: 0.5%
$197,500
$217,500
$225,500
$242,500
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
7th Edition
0072866578, 9780072866575
