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You are the manager of a bank that has set a target return on assets of 1.2 percent, a marginal tax rate of 20 percent,

You are the manager of a bank that has set a target return on assets of 1.2 percent, a marginal tax rate of 20 percent, a provision for loan loss of 0.4 percent, and a burden of 1.2 percent. What NIM must the bank achieve to make its target ROA?

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3.8%

2.8%

3.7%

3.1%

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