12-35 in the KMV Portfolio Model,the Expected Return on a Loan

12-35 In the KMV portfolio model,the expected return on a loan is the

A) annual all-in-spread minus the expected loss on the loan.
B) annual all-in-spread minus expected probability of the borrower defaulting over the next year.
C) annual all-in-spread minus the loss given default.
D) the interest and fees paid by the borrower minus the interest paid by the FI to fund the loan.
E) the interest and fees paid by the borrower minus the expected loss on the loan.