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Assume that a bank had the following CAMELS characteristics: C = 2.3, A = 3.5, M = 3.2, E = 3.9, L = 4.0, and

Assume that a bank had the following CAMELS characteristics: C = 2.3, A = 3.5, M = 3.2, E = 3.9, L = 4.0, and S = 4.2. Assuming that each characteristic is weighted evenly, determine the Composite CAMELS rating for this bank (to one decimal place). 



Based on the CAMELS Composite rating would regulators consider this bank to be a "problem" bank? Why or why not?

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