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If a bank has a 2% ROA and leverage ratio of 3%, what would happen to the ROE if regulation requires the bank to increase
If a bank has a 2% ROA and leverage ratio of 3%, what would happen to the ROE if regulation requires the bank to increase capital to 5% and there is no change in the ROA? (Use + or - to indicate an increase or decrease; round percentages to 2 decimal places.)
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