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10 12 Q1: Diversification in banks is considered a risk management technique that has risk reduction benefits, explain? 5 marks Q2: How does dividend policy

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10 12 Q1: Diversification in banks is considered a risk management technique that has risk reduction benefits, explain? 5 marks Q2: How does dividend policy affect the need for capital? 5 marks Q3: Applying minimum capital adequacy ratios serves to promote the stability and efficiency of the financial system, how? 5 marks 1 1

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