A bank wants to implement a loan pricing model and has to look at several variables to consider. Please select the variable that is incorrectly describ a. A profit margin to provide the bank with an adequate return on capital. O b. Risk premium to counter the effect of default risk. c. Cost of funding that include the cost of bonds issued. O d. Operating costs that include the cost of interest paid to depositors.
A bank wants to implement a loan pricing model and has to look at several variables to consider. Please select the variable that is incorrectly describ a. A profit margin to provide the bank with an adequate return on capital. O b. Risk premium to counter the effect of default risk. c. Cost of funding that include the cost of bonds issued. O d. Operating costs that include the cost of interest paid to depositors.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A bank wants to implement a loan pricing model and has to look at several variables to consider. Please select the variable that is incorrectly described.
a. A profit margin to provide the bank with an adequate return on capital.
b. Risk premium to counter the effect of default risk.
c. Cost of funding that include the cost of bonds issued.
d. Operating costs that include the cost of interest paid to depositors.
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