Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent. This RoA is a [Select] indicator for the bank, and the ✓ [Select] negative positive (When Thay a positive indicator, mmean a sign of good bank health; a "negative indicator" is a sign of poor bank health.) RoE is indicator for the bank.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent.
This RoA is a [Select]
indicator for the bank, and the
✓ [Select]
negative
positive
(When I say a positive indicator, mean a sign of good bank health; a
"negative indicator" is a sign of poor bank health.)
RoE is
indicator for the bank.
Transcribed Image Text:Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent. This RoA is a [Select] indicator for the bank, and the ✓ [Select] negative positive (When I say a positive indicator, mean a sign of good bank health; a "negative indicator" is a sign of poor bank health.) RoE is indicator for the bank.
Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent.
✓ [Select ]
negative
positive
This RoA is
RoE is a [ s
indicator for the bank, and the
dicator for the bank.
(When I say a "positive indicator," I mean a sign of good bank health; a
"negative indicator" is a sign of poor bank health.)
Transcribed Image Text:Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent. ✓ [Select ] negative positive This RoA is RoE is a [ s indicator for the bank, and the dicator for the bank. (When I say a "positive indicator," I mean a sign of good bank health; a "negative indicator" is a sign of poor bank health.)
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