Abank charges a commercial borrower a 6.55 percentage interest rate on a one-year loan. the bank also charges 0.5 percent origination fee and requires compensating balances of 7 percent in the form of demand deposits. reserve requirements are 10 percent. what is the promised gross rate of return on the loan?

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d