-What Is Bank A's Standard Deviation of Its Asset Allocation

question 13

Multiple Choice

$$\begin{array} { l l l l } & \text { National Banks } & \text { Bank A } & \text { Bank B } \\\text { Real Estate Loans } & 60 \text { percent } & 30 \text { percent } & 56 \text { percent } \\\text { Consumer Loans } & 20 \text { percent } & 30 \text { percent } & 28 \text { percent } \\\text { Commercial Loans } & 20 \text { percent } & 10 \text { percent } & 16 \text { percent }\end{array}$$
-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.
• E)27.36 percent.

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Definitions:

Tax System

The legal framework that outlines how taxes are collected, managed, and spent by the government.

Revenue

The overall revenue produced by a corporation through its primary business of selling goods or services.

Consumer Surplus

The variance between the price consumers are prepared to pay for a product or service and the price they actually incur.

Value

The importance, worth, or usefulness of something, often expressed in monetary terms but can also represent sentimental or intrinsic worth.