Capital adequacy-capital planning processes of hedge funds

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Reference no: EM131601598

1) A bank that funds a portfolio of assets with higher credit risk than another bank has to have more equity capital if creditors are to be indifferent between lending to either bank.

True/False

2) The Federal Reserve’s annual CCAR is an intensive assessment of the capital adequacy and capital planning processes of hedge funds and mutual funds.

True/False

Reference no: EM131601598

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