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4. Consider the following loan categories: Loan type Real estate Commercial Retail Others Total Australian Total (Sb) 80 480 120 120 800 ANK (Sb)

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4. Consider the following loan categories: Loan type Real estate Commercial Retail Others Total Australian Total (Sb) 80 480 120 120 800 ANK (Sb) 30 150 10 10 200 Bankeast (Sb) 8 20 44 8 80 Which bank has the most diversified loan portfolio? Does the bank with the greatest diversification have the lowest default risk? Why may a bank choose not to diversify?

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