Question 8 Capital and asset types Tier1 capital Tier 2 capital Corporate debenture Mortgage loan Loan to government ('000) 3000 1000 9000 45,000 4000 a) Calculate risk weighted asset b) Calculating the Capital Adequacy Ratio (CAR) c) Why Capital Adequacy Ratio Matters? Risk weight 90% 75% 0
Question 8 Capital and asset types Tier1 capital Tier 2 capital Corporate debenture Mortgage loan Loan to government ('000) 3000 1000 9000 45,000 4000 a) Calculate risk weighted asset b) Calculating the Capital Adequacy Ratio (CAR) c) Why Capital Adequacy Ratio Matters? Risk weight 90% 75% 0
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
![Question 8
Capital and asset types
Tier1 capital
Tier 2 capital
Corporate debenture
Mortgage loan
Loan to government
('000)
3000
1000
9000
45,000
4000
a) Calculate risk weighted asset
b) Calculating the Capital Adequacy Ratio (CAR)
c) Why Capital Adequacy Ratio Matters?
Risk weight
90%
75%
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffba675d4-9eee-4ed8-8ba1-d385d2e466e7%2F56aceccd-48e3-4992-a39d-4b258708a35b%2Fwchcmbr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 8
Capital and asset types
Tier1 capital
Tier 2 capital
Corporate debenture
Mortgage loan
Loan to government
('000)
3000
1000
9000
45,000
4000
a) Calculate risk weighted asset
b) Calculating the Capital Adequacy Ratio (CAR)
c) Why Capital Adequacy Ratio Matters?
Risk weight
90%
75%
0
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