A Bank Is Planning to Set Up a New Branch

question 79

Multiple Choice

A bank is planning to set up a new branch.It expects the new branch to generate 20 percent of the total business of the bank after it is opened.The bank expects the returns on this branch to be 15 percent with a standard deviation of 5 percent.Currently the bank has a 12 percent rate of return with a standard deviation of 4 percent.The correlation between the returns on the new branch and the bank's current returns is expected to be 0.25.What is the bank's expected standard deviation after adding this branch?

• A)12.84 percent
• B)3.35 percent
• C)4.36 percent
• D)3.58 percent
• E)6.8 percent

Understand the posting process for customer transactions and sales returns in the accounting system.

Differentiate between different types of ledgers and their specific uses in accounting.

Understand the importance and method of maintaining accurate records of accounts receivable transactions.

Analyze the effects of sales taxes on transactions and account balances.

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Definitions:

Prevent Cancer

Strategies or actions taken to reduce the risk of developing cancer, such as maintaining a healthy lifestyle, avoiding carcinogens, and participating in regular screening.

Sun Protection

Measures taken to shield the skin from harmful effects of the sun's UV radiation, including the use of sunscreen, clothing, and shade.

Palliative Care

Care designed to give the patient as pain-free a condition as possible. In addition to physical needs, the patient’s social, psychological, cultural, and spiritual needs are considered.

Psychological Aspects

The mental and emotional components influencing and being influenced by human behavior and experiences.