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Use the following information to answer the problem(s) below.
Consider two banks.Bank A has 1000 loans outstanding each for $100,000,that it expects to be fully repaid today.Each of Bank A's loans have a 6% probability of default,in which case the bank will receive $0 for each of the defaulting loans.Bank B has 100 loans of $1 million outstanding,which it also expects to be fully repaid today.Each of Bank B's loans have a 5% probability of default,in which case the bank will receive $0 for each of the defaulting loans.The chance of default is independent across all the loans.
-The standard deviation of the overall payoff to Bank A is closest to:
Intel
An American multinational corporation and technology company known for developing and manufacturing semiconductors and microprocessors.
Honda
A multinational conglomerate known primarily for its production of automobiles, motorcycles, and power equipment.
Dollar Contribution
The amount of money that a particular product, service, or business unit contributes to the overall profit of a company.
Strategy
How an organization expects to achieve its missions and goals.
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