Answer the following questions regarding to analysing loan portfolio information, show your workings for the calculation:

1. Use the following information to establish how much Bank As loan portfolio deviates from the national average:

	Bank A	National Ave.
Consumer loans	55%	40%
Overdrafts	10%	5%
Business loans	15%	20%
Mortgage	20%	35%
	100%	100%

2. Assume the standard deviation calculated in part a. of this question for Bank A is very large compared to the standard deviation of other banks. Is it necessarily bad for Bank A

3. A sample of 5,000 customers of similar size and activity have been observed. On average 75 have defaulted on their obligations per year and only 25 % of the outstanding debt could be recovered. The average exposure per customer is $50,000. Use the ACRA principle and calculate the total expected loss and the credit risk premium per customer.