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Homework answers / question archive / Which of the following is(are) true according to the Basel I convention?  I

Which of the following is(are) true according to the Basel I convention?  I

Finance

Which of the following is(are) true according to the Basel I convention? 

I.               RWA are weighted by how much inherent risk they carry. 

II.             Fully collateralized mortgages receive a 50% haircut on valuation.

III.           T-bills are considered risk-free and have 0% haircuts.

IV.          There is no change in these weightings between Basel I and Basel III.

a.     Only III and IV are true.

b.     All are true.

c.     None are true.

d.     All but II are true

Which statement is true? <br/>A. Extremely high levels of liquidity

guard against liquidity crises, but at the cost of lower returns on assets 
B. The less liquid assets a firm holds, the less likely it is that the firm will experience financial distress.
C. The lower the liquidity ratios, the less liquidity risk a firm has.
D. Liquid assets generate profits for the firm.
 

ABC Ltd. Has a ROE of 12% and a payout ratio of 30%. It has a stable

dividend policy and is not planning on raising new external capital. The company is currently paying a dividend of $2.00 per share What is the price of ABC's stock today? a. $55.56 b. $16.67 c. $60.22 d. $50.44 e. $65.12

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