Question: Question 14: Profitability ratios traditionally used in banking include return on equity (ROE) and return on assets (ROA). a. ROE measures overall profitability per dollar

Question 14: Profitability ratios traditionally used in banking include return on

equity (ROE) and return on assets (ROA). a. ROE measures overall profitability

Question 14: Profitability ratios traditionally used in banking include return on equity (ROE) and return on assets (ROA). a. ROE measures overall profitability per dollar of equity and higher values indicate higher profitability irrespective of the level of bank risk. b. ROA measures profit generated per dollar of assets and higher values indicate higher profits irrespective of the level of bank risk. c. ROE is equal to ROA times the equity multiplier (a measure of a bank's leverage). d. All of the answers. e. None of the answers

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