A
Ali10
Member
Hi
I have a few queries on the solution to the above question:
- in part (i) how come were the appropriate weightings decided on eg why were the residential mortgages given a weighting of 50 not 100 like the loans?
- in part (ii) how do we come to the conclusion that a fall of 17% in the MV of assets would erode the equity?
- where is the income statement used in the solution?
Thanks

I have a few queries on the solution to the above question:
- in part (i) how come were the appropriate weightings decided on eg why were the residential mortgages given a weighting of 50 not 100 like the loans?
- in part (ii) how do we come to the conclusion that a fall of 17% in the MV of assets would erode the equity?
- where is the income statement used in the solution?
Thanks