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Banks use many different measurements of an asset’s performance.

Banks use many different measurements of an asset’s performance.

AssignmentName:Unit 2 Individual ProjectDeliverable Length:750 words in a word document with the REFERENCE pageDetails:Banks use many different measurements of an asset’s performance. Among those measurements are the Capital Asset Pricing Model (CAPM); Return on Equity (ROE); and the DuPont formula.Consider the following scenario:Pacific Capital Bank is looking at using the return on equity model and the DuPont formula to measure the performance of certain capital investments.The Return on Equity looks at net income after tax in relationship to shareholder equity.The DuPont formula looks at net profit margin in relationship to total asset turnover to determine return on assets.Use the library, Internet, and course materials to research both of these methods, and write a 750-word document that covers the following:Explain how the Return on Equity formula can be used as a measurement tool for general performance in a commercial bank.Explain how the DuPont formula is used as a measurement of asset performance in banks.Then answer the following questions:Do the Return on Equity model and the DuPont formula provide a good measurement asset performance?Why or why not?Consider the following scenario:Pacific Capital Bank is looking at using the return on equity model and the DuPont formula to measure the performance of certain capital investments.Use the library, Internet, and course materials to research both of these methods, and write a 750-word document that covers the following:Then answer the following questions:

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