Solved

Assume That the Maximum Loss as a Percentage of Capital

Question 53

Multiple Choice

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


A) 4.20%
B) 23.00%
C) 34.29%
D) 2.92%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q48: Which of the following statements is true?<br>A)The

Q49: Using the Moody's Analytics model, the return

Q50: A digital default option is a call

Q51: Migration analysis is a method to:<br>A)manage loan

Q52: Consider the following table with information

Q54: Minimum risk portfolio refers to a combination

Q55: Which of the following statements is true?<br>A)One

Q56: Which of the following statements is true?<br>A)The

Q57: Which of the following is incorrect in

Q58: An FI that invests 40% of funds