Consider two local banks. Bank A has $110$ loans outstanding, each for $$1\mathrm{.}3$ million, that it expects will be repaid today.

Each loan has a $3\%$ 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 $$143$ million outstanding, which it also expects will be

repaid today. It also has a $3\%$ probability of not being repaid. Calculate the following:

a$.$ The expected overall payoff of each bank.

b$.$ The standard deviation of the overall payoff of each bank.

a$.$ The expected overall payoff of each bank.

The expected overall payoff of Bank $A$ is $$138\mathrm{.}71$ million. $($Round to two decimal places.$)$

The expected overall payoff of Bank B is $$138\mathrm{.}71$ million. $($Round to two decimal places.$)$

b$.$ The standard deviation of the overall payoff of each bank.

The standard deviation of the overall payoff of Bank A is $$2\mathrm{.}3210$ million. $($Round to four decimal places.$)$

The standard deviation of the overall payoff of Bank B is $ million. $($Round to four decimal places.$)$

Need only the answer to part b please