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    Business
  3. Study Set
    Financial Institution Management
  4. Exam
    Exam 11: Credit Risk II: Loan Portfolio and Concentration Risk
  5. Question
    An FI That Invests 40 Per Cent of Funds in a Loan
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An FI That Invests 40 Per Cent of Funds in a Loan

Question 20

Question 20

True/False

An FI that invests 40 per cent of funds in a loan with an expected return of 10 per cent and 60 per cent of funds in a loan with an expected return of 12 per cent can expect to earn 11 per cent on its portfolio.

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