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a) Describe two of the financial instruments traded on the capital market. b) The leverage formula can be used to calculate the return on equity

a) Describe two of the financial instruments traded on the capital market.

b) The leverage formula can be used to calculate the return on equity (Re in Swedish and ROE in English). Show with a numerical example how the return can be calculated. The numerical example must include a concise income statement and a balance sheet.

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