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QUESTION 5 A bank with $10,000 in assets has ROA =2% and ROE =10%. What is its leverage ratio (TA/Equity)?     2.5       5           4       1.25          QUESTION 6 The expected loss of a loan is a function of the following, except     Unexpected loss         Loss given default        Exposure at default       Probability of default

QUESTION 5 A bank with $10,000 in assets has ROA =2% and ROE =10%. What is its leverage ratio (TA/Equity)?     2.5       5           4       1.25          QUESTION 6 The expected loss of a loan is a function of the following, except     Unexpected loss         Loss given default        Exposure at default       Probability of default

Essentials Of Investments
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
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QUESTION 5

  1. A bank with $10,000 in assets has ROA =2% and ROE =10%. What is its leverage ratio (TA/Equity)?

       

    2.5

     
       

    5

         
       

    4

     
       

    1.25       

     

    QUESTION 6

    1. The expected loss of a loan is a function of the following, except

         

      Unexpected loss

         
         

      Loss given default

        
         

      Exposure at default

       
         

      Probability of default    
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