The return on equity is the product of: A. return on assets multiplied by the ratio of equity to assets B. the return on assets multiplied by the inverse of the ratio of equity to assets C. the profit margin multiplied by the asset utilization D. none of the above. If a bank has a return on assets of 1% and a ratio of equity to assets of 5%, its return on equity will be: A. 5% B. 20% C. 25% D. none of the above. If a bank has gross charge-offs of $25 for the current year, recoveries of $40, and provision for loan losses of \$30, how much will the reserve for loan losses change? A. $45 B. . 15 C. $+15 D. none of the above. The Barbados branch of a foreign bank has a ROE that is three times greater than the TT branch. What may be the reason for this difference? A. The Barbados branch is more profitable than the TT branch B. The TT branch has higher equity C. The Barbados branch has lower equity D. The Barbados branch has proportionately higher profits to equity. A junk bond (speculative) rating is A. BAA B. BBB C. BB D. none of the above