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Question $20$

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If a bank's concentration limit $($as a percentage of capital$)$ is $25$ percent, and it does not permit a loss of any loan to impact more than $10$ percent of its capital, what is the expected recovery rate on loans that are defaulted? $($NOTE: Recovery rate $+$ Loss rate $=100\%)$

Question $20$Select one:

a$.$

$30$ percent.

b$.$

$20$ percent.

c$.$

$60$ percent.

d$.$

$40$ percent.

e$.$

$50$ percent.