Consider a loan portfolio of $100 million principal which pays an annual rate of 9%. The economic capital against such a loan is estimated to be $6 million (i. e. 6% of the loan). The capital can be invested in government securities returning 2% per annum. The $100 million should be raised by deposits with an interest rate of 6%. The bank has an operating cost of $1 million per annum. The expected loss on this portfolio is assumed to be 0.75% per annum. Please calculate the RAROC for this loan portfolio.

Now ray has had the tires for two months and he notices that the tread has started to pull away from the tire. he has already contacted the place who sold the tires and calmly and accurately explained the problem. they didn’t him because they no longer carry that tire. so he talked with the manager and he still did not get the tire replaced. his consumer rights are being violated. pretend you are ray and write a letter to the company’s headquarters. here are some points to keep in mind when writing the letter: include your name, address, and account number, if appropriate. describe your purchase (name of product, serial numbers, date and location of purchase). state the problem and give the history of how you tried to resolve the problem. ask for a specific action. include how you can be reached.