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Consider two local banks. Bank A has 100 loans outstanding- oach for $1.0 mition, that it expocts will be repaid today. Each loan has a
Consider two local banks. Bank A has 100 loans outstanding- oach for $1.0 mition, that it expocts will be repaid today. Each loan has a 5% probubility of detauit, in which case the bank is not repaid being repaid. Calculate the following: a. The expected overat 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 5 mition. (Round to the nearest integor.) The expected overal payoff of Bank B is s milion. (Round to the nearest integer) b. The standard deviatien of the overall payoff of each bank. The standard deviation of the overal payof of llarik A is %. (Found to two decimar places.)
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