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Calculate the Bank's RAROC

Question 23

Multiple Choice

Calculate the bank's RAROC. A bank has four categories of assets classified by the level of risk embodied in them. The bank's capital is AUD100. The capital adequacy ratio is 10%. The bank's economic profit for the most recent period was AUD15 million. You are given the following asset categories and associated values in AUD million: Calculate the bank's RAROC. A bank has four categories of assets classified by the level of risk embodied in them. The bank's capital is AUD100. The capital adequacy ratio is 10%. The bank's economic profit for the most recent period was AUD15 million. You are given the following asset categories and associated values in AUD million:   A)  1.0% B)  15.00% C)  3.02% D)  30.24%


A) 1.0%
B) 15.00%
C) 3.02%
D) 30.24%

Correct Answer:

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