BASE CASE Economy Assets Guarantee Deposits Equity very strong 155 0 120 35 1400 120 20 weak 125 0 120 very weak 110 10 120 mkt. value (average) 132.5 2.5 120 b ) Management is thinking of selling off the existing loan portfolio and replacing it with riskier loans - the "High-risk case". Complete the "High Risk Case" table below as you did for the base case. HIGH RISK CASE Economy Assets Guarantee Deposits Equity very strong 161 0 120 41 strong 142 0 120 22 weak 1230 120 / 3 very weak 104 16 120 0 mkt. value (=average) 132.5 4 120 16.5 c. (2 points) Do the equity holders want management to increase the risk of the loans? Explain