Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![If a bank has a leverage ratio of 0.5 and a return on assets of 1%, what is its return on equity?
Select one:
OA 0.2%
O B. 2%
OC 5%
O D. 20%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd49b60e-9843-47a5-8b5d-3f3394f78711%2Fd1886db6-8b0f-4567-9f57-5dcf1fe07a55%2Fgrghlsd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If a bank has a leverage ratio of 0.5 and a return on assets of 1%, what is its return on equity?
Select one:
OA 0.2%
O B. 2%
OC 5%
O D. 20%
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