A credit analyst wants to determine a good pricing strategy to compensate for credit decisions that might have been made incorrectly. When analyzing her credit portfolio, the analyst focuses on the spreads in each loan to determine if they are sufficient to compensate the bank for all of the following costs and risks EXCEPT.

A credit analyst wants to determine a good pricing strategy to compensate for credit decisions that might have been made incorrectly. When analyzing her credit portfolio, the analyst focuses on the spreads in each loan to determine if they are sufficient to compensate the bank for all of the following costs and risks EXCEPT.
A . The marginal cost of funds provided.
B . The overhead cost of maintaining the loan and the account.
C . The inherent risk of lending to this borrower while providing a return on the risk capital used to the support the loan.
D . The opportunity cost of risk-adjusted marginal cost of capital.

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Answer: D