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8. Evaluation of a bank's return on equity (ROE) Which of the following are the bank decisions affecting financial characteristics and a bank's return on equity (ROE)? Check all that apply. Same decisions as for a bank's return on assets (ROA) except loan losses Only loan and deposit rate decisions Capital structure decision Same decisions as for a bank's return on assets (ROA) Which of the following formulas converts a bank's return on assets (ROA) into a bank's return on equity (ROE)? ROE=ROA +Leverage measure ROE=RO A Leverage measure) O ROE ROA Leverage measure ROE = ROA x Leverage measure Complete the following statement about converting a bank's return on assets (ROA) into a bank's return on equity (ROE). financial leverage. This For a given positive level of ROA, a bank's ROE will be relationship explains why managers of banks prefer to use a if it has a capital ratio and degree of financial leverage