Question: i need the answer pleasee 2- Calculate the return and risk on each loan individually, and on the portfolio comprised of the two loans. Suppose
2- Calculate the return and risk on each loan individually, and on the portfolio comprised of the two loans. Suppose that an Al holds two loans with the following characteristics. Loani X 60 2 40 Annual Spread between Loan Rate and Fil's Annual Cost of Funds Fees 5.0% 20% 45 15 Loss to Expected Given Default Default Frequency 25% 3% Pu-25 20 2
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