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

Question

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

Quizplus · Accepted Answer

Example 11-4:
11efb88f_6dfa_7886_ba2a_65079cfc208a_TB1314_00 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 the sum of the squared differences between the national benchmark and Bank A's proportions, divided by the number of observations. In this case, the variance is 0.0225, and the standard deviation is 0.15.

Use the Following Information to Answer Questions -Estimate the Standard Deviation of Bank A's Asset Allocation Proportions