If the yield, expenses, cost of fund and expected loss of a loan are 9%, 1.5%, 6% and 1.5%, respectively, calculate the pre-tax income of the loan. If the economic capital is estimated as 4.5% and tax...

If the yield, expenses, cost of fund and expected loss of a loan are 9%, 1.5%, 6% and 1.5%, respectively, calculate the pre-tax income of the loan. If the economic capital is estimated as 4.5% and tax rate is 34%, what will be your estimate of the loan’s RAROC? Mention at least three uses of RAPM in an organization.