Finance CCNY

Suppose that J.P. Morgan Bank holds $500 million in assets with an average duration of 6 years, and it holds $100 million in liabilities with an average duration of 3 year Further suppose there is a 5% increase in interest rates. What's the percentage decrease in J.P. Morgan Bank's net worth relative to the total original asset value? Suppose commercial banks J.P. Morgan and Citigroup have the same amount of assets and doing the similar banking business. Assuming the two banks have the same return on asset (ROA) this year. J.P. Morgan has return on equity (ROE) 10%, Citigroup has return on equity (ROE) 15% during the same year. Which of the following statement is correct? O A. Equity Multiplier for J.P. Morgan is less than that for Citigroup. Equity Multiplier for J.P. Morgan is more than that for Citigroup. OB O CJ.P. Morgan is risky. O D.J.P. Morgan has less equity capital than Citigroup