Use the Following Information to Answer Questions -What Is Bank A's Standard Deviation of Its Asset Allocation

question 36

Multiple Choice

Use the following information to answer questions:
$\begin{array}{lll}&\text { National Banks } & \text { Bank A } & \text { Bank B } \\\text { Real Estate Loans } & 60 \text { percent } & 30 \text { percent } & 56 \text { percent } \\\text { Consumer Losts } & 20 \text { percent } & 30 \text { percent } & 28 \text { percent } \\\text { Commercial Loans} & 20 \text { percent } & 10 \text { percent } & 16 \text { percent }\end{array}$
-What is Bank A's standard deviation of its asset allocation proportions relative to the national banks average? Use the formula in the textbook.

• A)7.23 percent.
• B)10.89 percent.
• C)18.71 percent.
• D)19.15 percent.

---

Definitions:

Last Year's Margin

The difference between sales revenue and cost of goods sold from the previous financial year, typically expressed as a percentage of sales.

Division's Turnover

The total revenue generated by a specific division of a company within a given period.

Last Year's Turnover

The total sales or revenues generated by a company during the previous year.

Net Operating Income

The profit generated from a company's usual business operations, excluding taxes and interest.