Assume a bank's $2.0 billion corporate loan portfolio offers a return of 6$30 million. The portfolio is funded by $2 billion in retail deposits with a transfer-priced interest rate charge of 2$16 million per annum and an effective tax rate of 25%. Risk analysis of unexpected losses associated with the portfolio tell us we need to set aside economic capital of $200 million against the portfolio; i.e., 10% of the loan amount. The bank's economic capital must invested in risk-free securities and, unfortunately in the regime of ultra low interest rates, the risk-free rate on government securities is only 1%. Although the loan portfolio's risk-adjusted return on capital (RAROC) is positive and seemingly high, the bank wants to adjust the traditional RAROC calculation to obtain a RAROC measures that take into account the systemic riskiness of the expected returns. If the risk-free rate is 1%, and the expected rate of return on the market portfolio is 8% such that the equity risk premium is 7%, and the beta of the firm's equity is 1.6, which of the following is the correct adjusted RAROC and is the project advisable?