You are the bank manager and want to maximize ROE for shareholders. You are already very...

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You are the bank manager and want to maximize ROE for shareholders. You are already very...

You are the bank manager and want to maximize ROE for shareholders. You are already very close to the minimum CAR. Would you rather buy German (10y, 0.32%) or French gov bonds (10y, 0.77%)?

German

French

business economics

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Answer 1

Answer #1

Ans. I would rather prefer buying the French Government Bonds ( 10y , 0.77% ) . However several different factors need to be considered for Maximizing ROE.

Best of Luck !! !!

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Answer 2

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