What Is the Risk (Standard Deviation of Returns) on the Bank's

question 16

Multiple Choice

What is the risk (standard deviation of returns) on the bank's loan portfolio if loan returns are uncorrelated (ρ = 0) ?

• A)1.41 percent.
• B)1.63 percent.
• C)0.93 percent.
• D)3.57 percent.
• E)1.18 percent.

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