Assets Loans: $100 Securities: $10 Cash Reserves: $10 Liabilities plus Equity Deposits: $100 Borrowings: $0 Equity $20 (1) Calculate the return on equity if security return rate is 20%, loan rate is 15%, reserve pays 1% and the deposit rate is 5%. (2) Calculate the capital ratio and return on equity If equity=50 and deposits=70, security return rate is 10%, loan rate is 15%, reserve pays 1% and the deposit rate is 10%.