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

Question

$$\begin{array} { l c l l } 
& \text { National Benchmark } & \text { Bank A } & \text { Bank B } \
\text { Consumer Loans } & 50 \text { percent } & 65 \text { percent } & 35 \text { percent } \
\text { Commercial Loans } & 50 \text { percent } & 35 \text { percent } & 65 \text { percent }
\end{array}$$
-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 the sum of the squared differences between the national benchmark and Bank A's proportions, divided by the number of observations.

-Estimate the Standard Deviation of Bank A's Asset Allocation Proportions