Question: A) Explain the relationship between return on assets and return on equity. What incentives does this relationship give a bank manager? Is this the desired

A) Explain the relationship between return on assets and return on

A) Explain the relationship between return on assets and return on equity. What incentives does this relationship give a bank manager? Is this the desired outcome preferred by regulators? Discuss. B)How can specializing in lending help to reduce the adverse selection problem in lending? Explain

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