Finance Assignment | Professional Writing
May 29th, 2020
If a bank’s concentration limit is 0.35 (i.e., 35 percent of capital), and its expected recovery from defaulted loans is 0.2 (i.e., 20 percent of contractually promised principal and interest payments),
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Finance Assignment | Professional Writing
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what is the maximum loss it permits to affect its capital in the event of a default?
Please put your answer in decimals (not in percentage points) and round your answer to the nearest 2nd decimal.
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