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Score: 0 of 1 pt 5 of 9 (0 complete) HW Score: 0%, 0 of 9 pts P10-20 (similar to) Question Help Consider two local banks. Bank A has 81 loans outstanding, each for $ 1.0 million, that it expects will be repaid today. Each loan has a 4% probability of default, in which case the bank is not repaid anything. The chance of default is independent across all the loans. Bank B has only one loan of $81 million outstanding, which it also expects will be repaid today. It also has a 4% probability of not being repaid. Which bank faces less risk? Why? (Select the best choice below.) O A. The expected payoff is higher for Bank A, but is riskier. I prefer Bank B. O B. The expected payoffs are the same, but Bank A is less risky. I prefer Bank A. O C. The expected payoffs are the same, but Bank A is riskier. I prefer Bank B. O D. In both cases the expected loan payoff is the same: $81 million x 0.96 = $77.8 million. Consequently, I don't care which bank I own