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4. (10 points) Leverage Ratio and Capital Requirements Suppose Goldman Sachs has a leverage ratio of 25, and it has $250 billion worth of assets

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4. (10 points) Leverage Ratio and Capital Requirements Suppose Goldman Sachs has a leverage ratio of 25, and it has $250 billion worth of assets on its balance sheet. a) (7 points) What would the effect of a 4% market downturn be for Goldman Sachs? 4 b) (3 points) What is capital requirements imposed by regulators and what are some of its purposes? 4. (10 points) Leverage Ratio and Capital Requirements Suppose Goldman Sachs has a leverage ratio of 25, and it has $250 billion worth of assets on its balance sheet. a) (7 points) What would the effect of a 4% market downturn be for Goldman Sachs? 4 b) (3 points) What is capital requirements imposed by regulators and what are some of its purposes

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