Using Standard Deviations, Which Bank Is in a Better Position

question 47

Multiple Choice

Using standard deviations, which bank is in a better position if the average earnings on the assets of Bank A is 11 percent and Bank B is 12 percent (ignore all other factors) ?

• A)Bank B, because its earnings of 12 percent is higher than Bank A's 11 percent while, its standard deviation is lower.
• B)Bank B, because its earnings of 12 percent is higher compared to Bank A's 11 percent, while its standard deviation is higher.
• C)Bank B, because its earnings of 12 percent is higher compared to Bank A's 11 percent, while its standard deviation is the same.
• D)Bank A, because although its earnings of 11 percent is lower compared to Bank B's 12 percent, its standard deviation is significantly lower.
• E)Bank A, because although its earnings of 11 percent is lower compared to Bank B's 12 percent, its standard deviation is the same. [Refer to: 11-66]

---

Definitions:

Provincial Labour Relations Board

A governmental body at the provincial level responsible for regulating labor relations and enforcing labor laws.

Canada Labour Code

A set of laws governing labor relations and workplace standards within Canada, applying to employees in federally regulated sectors.

Unlawful Picketing

The act of demonstrating or protesting in a manner that is not permitted by law, often in a labor dispute context.

Adequate Wage

Compensation for labor that meets or exceeds the minimum level necessary for basic living expenses.