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Assume That the Maximum Loss as a Percentage of Capital

Question 6

Multiple Choice

Assume that the maximum loss as a percentage of capital is 12 per cent of an FI's capital to a particular sector. The FI's concentration limit on this sector 35 per cent. What is the sector's loss rate (round to two decimals) ?


A) 4.20 per cent
B) 23.00 per cent
C) 34.29 per cent
D) 2.92 per cent.

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