2.6. Determine the following: 2.6.1.Herfindahl-Hirschman index (HHI) with the following information of the six banks' deposits; 2.6.2.If the biggest and smallest bank (in terms of deposits) merge, what will be the HHI for all the remaining banks? | 2.6.3. Will the merger be allowed? (Ch. 9) A B C Bank ($ in millions) 70 80 90 D 120 E 140 F 200

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
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2.6. Determine the following:
2.6.1.Herfindahl-Hirschman index (HHI) with the following information of the six banks'
deposits;
2.6.2.If the biggest and smallest bank (in terms of deposits) merge, what will be the HHI for
all the remaining banks? |
2.6.3. Will the merger be allowed? (Ch. 9)
A
B
C
Bank
($ in millions)
70
80
90
D
120
E
140
F
200
Transcribed Image Text:2.6. Determine the following: 2.6.1.Herfindahl-Hirschman index (HHI) with the following information of the six banks' deposits; 2.6.2.If the biggest and smallest bank (in terms of deposits) merge, what will be the HHI for all the remaining banks? | 2.6.3. Will the merger be allowed? (Ch. 9) A B C Bank ($ in millions) 70 80 90 D 120 E 140 F 200
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