Consider two local banks.

Bank A has 77 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 $77 million outstanding, which it also expects will be repaid today. It also has a4% probability of not being repaid.

Calculate the following:

a. The expected overall payoff of each bank. The expected overall payoff of Bank A is $ million. (Round to the nearest integer.)

The expected overall payoff of Bank B is $ million. (Round to the nearest integer.)

b. The standard deviation of the overall payoff of each bank. The standard deviation of the overall payoff of Bank A is . (Round to two decimal places.)

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