3. Information concerning the allocation of loan portfolios to different market sectors is given below:

Bank A & Bank B would like to estimate how much their portfolios deviate from the national average.

a.) Which bank is further away from the national average?

b.) Is a large standard deviation necessarily bad for an FI using this model?

\begin{tabular}{lccc} & \multicolumn{2}{c}{ Allocation of Loan Portfolios in Different Sectors (\%) } \\ Sectors & National & BankA & BankB \\ Commercial & 30% & 50% & 10% \\ Consumer & 40% & 30% & 40% \\ Real Estate & 30% & 20% & 50% \end{tabular} \begin{tabular}{lccc} & \multicolumn{2}{c}{ Allocation of Loan Portfolios in Different Sectors (\%) } \\ Sectors & National & BankA & BankB \\ Commercial & 30% & 50% & 10% \\ Consumer & 40% & 30% & 40% \\ Real Estate & 30% & 20% & 50% \end{tabular}