If a bank has a leverage ratio of 0.1 and a return on assets of 2%,what is its return on equity?

Name: If a bank has a leverage ratio of 0.1 and a return on assets of 2%,what is its return on equity?
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The return on equity (ROE) can be calculated using the formula ROE = Return on Assets (ROA) / Leverage Ratio. Given a ROA of 2% (or 0.02 in decimal form) and a leverage ratio of 0.1, ROE = 0.02 / 0.1 = 0.2 or 20%.

If a Bank Has a Leverage Ratio of 0