Question: Scrooge McDuck Bancorp (SMB) is evaluating a potential loan using the RAROC model with duration to calculate the value at risk. Currently, the RAROC seems

Scrooge McDuck Bancorp (SMB) is evaluating a potential loan using the RAROC model with duration to calculate the value at risk. Currently, the RAROC seems to be 11.99%, while SMB requires a rate of 12.00%. Which change in the loan's terms would likely boost this loan's RAROC over the benchmark rate?

Investing in another loan with negative correlation

Longer maturity

Decreasing the loan amount

Less fees charged

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