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1.Discuss why investors are willing to buy shares in banks when: (i) the ROA of banks is typically quite low, and (ii) banks are subject
1.Discuss why investors are willing to buy shares in banks when:
(i) the ROA of banks is typically quite low, and
(ii) banks are subject to many restrictions and are closely monitored by the regulators.
2.What is the capital adequacy ratio for a bank? Discuss why it is a good way to assess the risk of a bank
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