Great Lakes Bank's balance sheet (in billions USD) is shown below. Under Basel III requirements, bank management must ensure that the Net Stability Funding Ratio (NSFR) exceeds the minimum threshold. Cash 5 Retail Deposits (Stable) 10 Treasury Bonds (>1 yr) X Retail Deposits (Less Stable) 20 Corporate Bonds rated A y Wholesale Deposits 50 Mortgages Z Preferred Stock (>1 year) 5 Small Business Loans (<1 yr) 40 Tier 2 Capital 10 Fixed Assets 20 Tier 1 Capital 5 1. What is the NSFR for Great Lakes Bank when x = 5, y = 10, z = 20? 2. Suppose that treasuries have a return of 3%, Corporate Bonds (rated A) a return of 6%, and mortgages a return of 8%. Find the values of x, y, z that maximize returns subject to the NSFR requirement