Consider the following loan categories:

Loan Type	Singapore Banks Total ($b)	Bank A ($b)	Bank B ($b)	Bank C ($b)	Bank D ($b) *
Real Estate	4,800	21	40	10
Commercial	10,200	171	48	12
Industrial	3,200	42	40	10
Consumer	2,800	18	64	8
Travel and Hospitality	14,000	20	60	45
Other	15,000	48	40	10

1. *Bank D is only investing in short-term government securities.

Which bank has the most diversified portfolio? Show all calculations. [Hint: Use the formula presented in the course.]

b)Explain why the approach that you employed in Question 7a has benefits and limitations. Ensure that the benefits and limitations are justified and clearly explained. What impact would COVID -19 have on your answer.