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8. Imagine an investment bank which has equity of 10 and operates in an economy where risk is 0.15, the policy rate is 0, the
8. Imagine an investment bank which has equity of 10 and operates in an economy where risk is 0.15, the policy rate is 0, the rate of return on financial assets is 0.05 and the price of financial assets is 1. Use Section 6.5 to answer the following questions: 8. Imagine an investment bank which has equity of 10 and operates in an economy where risk is 0.15, the policy rate is 0, the rate of return on financial assets is 0.05 and the price of financial assets is 1. Use Section 6.5 to answer the following questions
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