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QUESTION 2 Note: The residential mortgages all have a loan-to-value of between 60 and 80 percent. If the bank has capital of $50 million, what

QUESTION 2

image text in transcribed Note: The residential mortgages all have a loan-to-value of between 60 and 80 percent. If the bank has capital of $50 million, what is the leverage ratio using the standardized approach?

5.00 percent.

8.33 percent.

25.0 percent.

50.0 percent.

None of the above.

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