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Nailed it! Thank you so much David for the excellent study material, with a full time banking job and limited time available you made it possible! I saw letter and quantiles 15 mins ago but now they disappeared also to me. My quantiles: 22322

Unexpected loss is not included in the RAROC formula, the 20% initial RAROC was quite straightforward to calculate. Then just replace the interest on loan to see which was giving the minimum acceptable 15%

I got the same result for netting question: 9 bilateral - 2 multilateral = 7 reduction The RAROC question was asking, starting from a RAROC of 20% what is the maximum acceptable interest on deposits in order to maintain a RAROC of at least 15%. The only option leading to exactly RAROC of 15%...

I can agree with you with that but the fact that the position is not in the portfolio yet is key for me. As David wrote in the notes: "Incremental VaR is change in VaR owing to a new position. Incremental VaR is a “before and after” comparison of the VaR: before and after the trade (new position)."

I am also not sure but what made me choose incremental is that the question clearly mentioned the fact the portfolio contained only 1 position and that one new position was about to be added. Maybe I am wrong but I would use MVaR in case we want to increase the exposure to particular asset and...

I choose incremental VaR as well, being the change in VaR owing to a new position = VaRp+a - VaRp MVaR is the increase in portfolio VaR following an additional dollar of exposure to that component so not the case.