A manager decides not to lend to any firm in sectors that generate losses in excess of
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a. If the average historical losses in the automobile sector total 8 percent, what is the maximum loan a manager can lend to firms in this sector as a percentage of total capital?
b. If the average historical losses in the mining sector total 15 percent, what is the maximum loan a manager can lend to firms in this sector as a percentage of total capital?
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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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