Bank A has a ratio of deposits to assets of 90 percent and a variance of asset

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Bank A has a ratio of deposits to assets of 90 percent and a variance of asset returns of 10 percent. Bank B has a ratio of deposits to assets of 85 percent and a variance of asset returns of 5 percent. Which bank should pay the higher insurance premium?

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Financial Institutions Management A Risk Management Approach

ISBN: 9781266138225

11th International Edition

Authors: Anthony Saunders, Marcia Millon Cornett, Otgo Erhemjamts

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