10. A bank has risk-weighted assets of $175 and equity of $12.5. If regulators require a

minimum risk-weighted capital ratio of 5 percent given the current level of equity, how

many new assets with a 100 percent risk weight can the bank add? How many with a 50

percent risk weight? If the bank had 20 percent more equity, how many new assets with a

100 percent risk weight could the bank add? How many with a 50 percent risk weight?

How does having more equity affect a bank's ability to grow? How is this growth affected

by the riskiness of the bank's assets?