Use the following information to answer questions 61-: $$\begin{array} { l c l l }
& \text { National Benchmark } & \text { Bank A } & \text { Bank B } \
\text { Consumer Loans } & 50 \text { percent } & 65 \text { percent } & 35 \text { percent } \
\text { Commercial Loans } & 50 \text { percent } & 35 \text { percent } & 65 \text { percent }
\end{array}$$ [Reference: 11-66]
-Estimate the standard deviation of Bank A's asset allocation proportions relative to the national benchmark.

Question

Use the following information to answer questions 61-: $$\begin{array} { l c l l } 
& \text { National Benchmark } & \text { Bank A } & \text { Bank B } \
\text { Consumer Loans } & 50 \text { percent } & 65 \text { percent } & 35 \text { percent } \
\text { Commercial Loans } & 50 \text { percent } & 35 \text { percent } & 65 \text { percent }
\end{array}$$ [Reference: 11-66]
-Estimate the standard deviation of Bank A's asset allocation proportions relative to the national benchmark.

Quizplus · Accepted Answer

The standard deviation of Bank A's asset allocation proportions relative to the national benchmark is 15.00 percent. This is calculated by taking the square root of the variance, which is 225.00 percent squared. The variance is calculated by taking the sum of the squared differences between Bank A's asset allocation proportions and the national benchmark, and then dividing by the number of observations.

Use the Following Information to Answer Questions 61- [Reference: 11-66] -Estimate the Standard Deviation of Bank A's Asset

Use the Following Information to Answer Questions 61- [Reference: 11-66]
-Estimate the Standard Deviation of Bank A's Asset