What is the expected recovery on loans that are defaulted

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Problem 1: If a bank's concentration limit (as a percentage of capital) is 25.0 percent, and it does not permit a loss of any loan to impact more than 8 percent of its capital, what is the expected recovery on loans that are defaulted?

A. 68%
B. 52%
C. 40%
D. 60%
E. 55%

Reference no: EM132985553

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