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Assume That an FI's Concentration Limit on a Particular Sector

Question 38

Multiple Choice

Assume that an FI's concentration limit on a particular sector is 15 per cent and that the sector's loss rate is 25 per cent. What is the maximum loss as a percentage of the FI's capital (round to two decimals) ?


A) 1.67 per cent
B) 0.60 per cent
C) 10.00 per cent
D) 3.75 per cent

Correct Answer:

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