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Bank Y and Bank Z both have assets of $1 bn. The return assets for both banks is the same. Bank Y has liabilities of
Bank Y and Bank Z both have assets of $1 bn. The return assets for both banks is the same. Bank Y has liabilities of $800mn while Bank Z's liabilities are $900mn. In which bank would you prefer to hold an equity stake? Selected Answer: B. Bank Y Answers: A. You should be indifferent between the two banks as both have the same return on assets. B. Bank Y C. Bank Z D. There is insufficient information to answer this
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