A regression of sectoral loan losses against total loans losses,both measured as a percentage of total loans,of a bank results in the following beta coefficients for the real estate (RE)and commercial (CL)loan variables: $\beta$_RE = 1.2,$\beta$_CL = 1.6.The intercept for both regressions is zero. The results indicate that for the bank

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The beta coefficients greater than 1 for both real estate (1.2) and commercial loans (1.6) indicate that both types of loan losses are systematically higher than the total loan losses.

A Regression of Sectoral Loan Losses Against Total Loans Losses,both β\betaβ

A Regression of Sectoral Loan Losses Against Total Loans Losses,both $\beta$