Suppose the average ROE and ROA of banking industry are the following:

Industry-average ROE = 7%; Industry-average ROA = 5%. 

Considering this additional information, is ABC Bank more likely or less likely to take risk relative to the industry average? And why?

Answer rating: 100% (QA)

To determine whether ABC Bank is more or less likely to take risks relative to the industry average we need to examine the relationship between ROE RO... View the full answer