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Suppose an investment bank makes an investment of $10 million in bitcoin in two possible ways: a) 10% debt and 90% from their capital

Suppose an investment bank makes an investment of $10 million in bitcoin in two possible ways: a) 10% debt and 90% from their capital b) 90% debt and 10% from their capital Calculate the ROE on this investment in the two cases given that the value of the bank's investment decreases by 50%. Which case has the smallest ROE and explain "the perils of leverage" in this context.

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