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A manager decides not to lend to any firm in sectors that generate losses in excess of 5 percent of capital.

If the average historical losses in the automobile sector total 8 percent, what is the maximum loan a manager can lend to firms in this sector as a percentage of total capital?

If the average historical losses in the mining sector total 10 percent, what is the maximum loan a manager can lend to firms in this sector as a percentage of total capital?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92850174

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