The expected loss rate for a customer is 40 the 99, Finance Basics

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The expected loss rate for a customer is 40 the 99

Question: The expected loss rate for a customer is .40%, the 99% confidence interval VaR is 5 cents per dollar, the bank's cost of funding is 5.5%, and the cost of bank equity capital is 11%. Enter your answers as decimals with four places of precision. What is the cost of expected losses? What is the cost of unexpected losses? What is the loan rate to customers?

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Finance Basics: The expected loss rate for a customer is 40 the 99

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