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  Assume that a loan has the following characteristics:
    Gross revenue is expected to be $5.0 million
   Interest expense is $3.0 million
   Expected return on the $6.0 million in economic capital is $175,000
      Expected loss on the loan is $250,000
   Other costs associated with making the loan equal $1.0 million.
  What is the risk-adjusted return on capital (RAROC) for this loan?
  A.     10.42%
  B.     15.42%
  C.     22.92%
  D.     32.08%
  Answer: B