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Bank Sigma has the following assets: Cash and Treasuries $100 million Fed Funds Sold $100 million Residential Mortgages $200 million (1-4 family, 60% LTV) Commercial

Bank Sigma has the following assets:

Cash and Treasuries $100 million

Fed Funds Sold $100 million

Residential Mortgages $200 million (1-4 family, 60% LTV)

Commercial Loans $600 million

What is the amount of risk-adjusted assets?

1.

$900 million

2.

$600 million

3.

$1,000 million

4.

$720 million

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