Assume that the bank securitises asset A1. Calculate the risk-adjusted regulatory capital both before and after the securitization. The table below presents the distribution of assets held by a bank with the associated probabilities of default and rates of return. The regulatory capital ratio is 10%. 
A) Before 467.86, After 182.14
B) 46.79, 18.21
C) 46.79, 28.33
D) 467.86, 283.33
Correct Answer:
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