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What is the economic capital

Response to the following problem:

Suppose that the credit loss in a year has a lognormal distribution. The logarithm of the loss is normal with mean 0.5 and standard deviation 4. What is the economic capital requirement if a confidence level of 99.97% is used?

PLEASE SHOW CALCULATIONS ON HOW YOU ARRIVED AT YOUR ANSWER.

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Financial Accounting: What is the economic capital

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Financial Accounting: What is the economic capital

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