Consider an FI That Holds Two Loans with the Following

question 49

Multiple Choice

Consider an FI that holds two loans with the following characteristics: What is the risk of the loan portfolio (round to two decimals) ?

• A)4.90 per cent
• B)3.41 per cent
• C)4.16 per cent
• D)6.10 per cent

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Definitions:

Drafting

The process of creating a preliminary version of a document or plan.

Brainstorms

A group or individual creativity technique designed to generate a large number of ideas for the solution to a problem.

Jot-dots

A technique for making brief, bullet-pointed notes to capture key information succinctly.

Freewriting

Freewriting is a prewriting technique in which a person writes continuously for a set period of time without regard to spelling, grammar, or topic, to generate ideas and overcome blocks.