Consider an FI That Holds Two Loans with the Following

question 8

Multiple Choice

Consider an FI that holds two loans with the following characteristics: $$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Loan } i & \text { Weight } i & \begin{array} { c } \text { Annual spread between Ioan rate and Fl's } \\\text { cost of funds }\end{array} & \begin{array} { c } \text { Annual fees } \\\text { Loss to Fl given } \\\text { default }\end{array} & \begin{array} { c } \text { Expected default } \\\text { frequency }\end{array} & \\\hline 1 & 0.45 & 3.5 \% & 1.5 \% & 30 \% & 4 \% & P _ { 12 } = - 0.20 \\\hline 2 & 0.55 & 4.5 \% & 2.0 \% & 25 \% & 3 \% & \\\hline\end{array}$$ What is the risk of the loan portfolio (round to two decimals) ?

• A)5.88%
• B)10.01%
• C)3.16%
• D)4.26%

Grasp the scale and complexity of the human nervous system.

Comprehend the function of neurotransmitters and their role in neuron communication.

Understand the principles of action potentials and their significance in nerve cell function.

Analyze how molecules like cocaine interfere with neurotransmitter function in the brain.

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Definitions:

Salary

Compensation received by an employee, usually as periodic payments, for performing their job responsibilities.

Bonuses

Additional compensation given to employees as an incentive or reward for their performance and contribution to the organization.

Incentive Plans

Programs designed to motivate and reward employees for achieving specific performance targets or business goals.

Demotivator

An aspect or condition that reduces motivation or enthusiasm.