A Bank's Return on Equity (ROE) Is Calculated By

question 1

Multiple Choice

A bank's Return on Equity (ROE) is calculated by:

• A)Dividing the bank's net profit after taxes by the bank's capital
• B)Dividing the banks liabilities by the bank's capital
• C)Taking the bank's assets plus the net profit after taxes and dividing this sum by the bank's capital
• D)Dividing the bank's net profit after taxes by the sum of the bank's assets and its liabilities

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Definitions:

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