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Question 27 Suppose a bank reduces its Bank Capital by half. How much does return on equity (ROE) increase/decrease as a result? ROE is unaffected

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Question 27 Suppose a bank reduces its Bank Capital by half. How much does return on equity (ROE) increase/decrease as a result? ROE is unaffected because the profits increase by same amount ROE doubles ROE also becomes half Bank Capital is unrelated to ROE

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