Consider two local banks, Bank A has 75 loans outstanding, each for $1.0 million, that it expects will be repaid today. Each loan has a 4% 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 $75 million outstanding, which it also expects will be repaid today. It also has a 4% 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. Consider the follow ng 6 months of returns for 2 stocks and a portfolio of those 2 stocks: Note. The port oli is composed 50 of Stock Aan 50% of Stoc B a. What is the expected return and standard deviation of returns for each of the two stocks? b. What is the expected return and standard deviation of returns for the portfolio? c. Is the portfolio more or less risky than the two stocks? Why? (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Feb 4% -2% Apr 2% May -2% 4% Jun 3% 2% Mar Jan 0% 0.5% Stock A Stock B 5% 0.5% 0.5% 0.5% 0.5% 0.5% Portfolio