If a bank has a leverage ratio of 0.1 and a return on capital of 2%, what is its return on equity?
A) 20%
B) 2.1%
C) 0.2%
D) 5%
Answer: A
If a bank has a leverage ratio of 0.1 and a return on capital of 2%, what is its return on equity?
A) 20%
B) 2.1%
C) 0.2%
D) 5%
Answer: A