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being repaid. Calculate the following: a. The expected payoff of Bank A. b. The expected payoff of Bank B. c. The standard deviation of the
being repaid. Calculate the following: a. The expected payoff of Bank A. b. The expected payoff of Bank B. c. The standard deviation of the overall payoff of Bank A. d. The standard deviation of the overall payoff of Bank B. a. The expected payoff of Bank A. The expected payoff of Bank A is $ million. (Round to two decimal places.) b. The expected payoff of Bank B. The expected payoff of Bank B is $ million. (Round to two decimal places.) c. The standard deviation of the overall payoff of Bank A. Hint: Calculate the standard deviation of each loan using the following formulas: Var(R)=E[RE[R]2]=RpR(RE[R])2SD(R)=Var(R) And consider that the bank has 75 loans that are all independent of each other. The standard deviation of the overall payoff of Bank A is $ million. (Round to two decimal places.) d. The standard deviation of the overall payoff of Bank B. The standard deviation of the overall payoff of Bank B is $ million. (Round to two decimal places.)
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