-If Bank A's Average Return on Its Loan Portfolio Is

question 52

Multiple Choice

$$\begin{array} { l l l l } & \text { National Banks } & \text { Bank A } & \text { Bank B } \\\text { Real Estate Loans } & 60 \text { percent } & 30 \text { percent } & 56 \text { percent } \\\text { Consumer Loans } & 20 \text { percent } & 30 \text { percent } & 28 \text { percent } \\\text { Commercial Loans } & 20 \text { percent } & 10 \text { percent } & 16 \text { percent }\end{array}$$
-If Bank A's average return on its loan portfolio is lower than that of Bank B's,

• A)its risk-adjusted return is higher than Bank B's.
• B)its risk-adjusted return is lower than Bank B's.
• C)its standard deviation is lower than Bank B's.
• D)its standard deviation is higher than Bank B's.
• E)Answers b and d

Understand the relationship between present value and discount rate, including graphical representation.

Calculate interest rates required for an investment to reach a predetermined maturity value in a given time period.

Understand the concept of mutual trust between management and employees and its importance in achieving common objectives.

Recognize the significance of psychological factors in job design, especially in physical and technology-based work environments.

---

Definitions:

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, where individuals create their own "subjective social reality."

Authenticity

The quality of being genuine or real; in digital contexts, it often refers to content or personas that are perceived as true to their origins, values, or intentions.

Social Commerce

The use of social network sites to mediate and facilitate online buying and selling of products and services.

Organic Word-Of-Mouth

Natural and unpaid spread of information and recommendations about a product or service among consumers.