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The bank is considering changing its asset mix by moving $100 million of commercial loans into Treasury securities. If it does change the asset mix
The bank is considering changing its asset mix by moving $100 million of commercial loans into Treasury securities. If it does change the asset mix and capital remains the same, the risk-based capital ratio O will not change because the total assets have not changed. will increase by 16.67%. O will increase because the assets will have less risk O will decrease because the earnings rate on Treasuries is less than on loans
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