EBK THE ECONOMICS OF MONEY, BANKING AND
EBK THE ECONOMICS OF MONEY, BANKING AND
4th Edition
ISBN: 9780100668201
Author: Mishkin
Publisher: YUZU
Question
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Chapter 9, Problem 23AP
To determine

The interpretation of ROE and ROA in the context of capitalization of the bank.

Concept:

ROE- It means Return on equity and is calculated as the net income divided by equity.

ROA- It means the Return on Assets and is calculated as the net income divided by the average assets.

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