12-48 What Is the Risk (Standard Deviation of Returns)on the Bank's

question 54

Multiple Choice

12-48 What is the risk (standard deviation of returns) on the bank's loan portfolio if loan returns are uncorrelated ( $\rho$ = 0) ?

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

---

Definitions:

Racial Purity

An ideology that advocates for the maintenance of a perceived genetic or cultural homogeneity within a race, often used to justify racist policies and practices.

Secure Boundaries

Secure Boundaries refer to clear, defined limits that protect individuals or groups from external harm or intrusion, contributing to a sense of safety and well-being.

Racist Past

Refers to historical periods or actions characterized by discrimination, prejudice, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

White Supremacist Views

Ideologies that hold white people to be superior to people of other racial backgrounds, often leading to discrimination and violent acts against those deemed inferior.