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Bank capital has both benefits and costs for the bank owners. Higher bank capital ________ the likelihood of bankruptcy, but higher bank capital ________ the return on equity for a given return on assets

User Eugene Yu
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The full sentence is the following: Bank capital has both benefits and costs for the bank owners. Higher bank capital reduces the likelihood of bankruptcy, but higher bank capital reduces the return on equity for a given return on assets

User David Pfeffer
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