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Use the following information to answer the problem(s) below.
Consider two banks.Bank A has 1000 loans outstanding each for $100,000,that it expects to be fully repaid today.Each of Bank A's loans have a 6% probability of default,in which case the bank will receive $0 for each of the defaulting loans.Bank B has 100 loans of $1 million outstanding,which it also expects to be fully repaid today.Each of Bank B's loans have a 5% probability of default,in which case the bank will receive $0 for each of the defaulting loans.The chance of default is independent across all the loans.
-The standard deviation of the overall payoff to Bank A is closest to:
Rhodopsin
A light-sensitive receptor protein found in the rods of the retina, critical for vision in low-light conditions.
Photoreceptor
Sensory receptor that is sensitive to light—for example, rods and cones of the retina.
Lens Flattens
A process where the lens of the eye changes shape, becoming less curved, to focus distant objects clearly onto the retina.
Ciliary Muscles
Ring-shaped muscles located in the eye that control the shape of the lens to focus on objects at varying distances.
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