Refer to the information below for a bank lender: Administrative/operating cost 0.10% Expected loss: 0.30% Regulatory risk

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Refer to the information below for a bank lender: Administrative/operating cost 0.10% Expected loss: 0.30% Regulatory risk weight for investment grade loan: 75% Regulatory risk weight for sub-investment grade loan: 150%

Portfolio weight for investment grade loan: 67% Regulatory capital ratio (equity/RWA): 8.00% Bank's funding cost: 4.00% Bank's interest rate spread: 2.1%

Bank's required rate of return on equity: 20% What is the economic return for the lender?