Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hi.. Suppose that an FI holds two loans with the following characteristics. Allocation of Loan Portfolios in Different Sectors (%) National Bank A 30% 50%
hi.. Suppose that an FI holds two loans with the following characteristics. Allocation of Loan Portfolios in Different Sectors (%) National Bank A 30% 50% 30 20 Sectors Commercial Consumer Real Estate Estimate A and og using the loan allocation deviation formula. 40 30 Oo(A) 16.33%; o(B) = 14.14% Oo(A) 17.32%; (B) = 20.0% O = Oo(A) 12.25%; o(B) = 14.14% Oo(A) = 14.14%; o(B) = 16.33% Bank B 10% 40 50 Assume the same information as in the previous question . Which of the following observations concerning the Loan Volume- Based models and the Loan allocation deviation is not true? O Bank B deviates from the national average more than Bank A. O Deviation from the national benchmark is not necessarily bad. O Bank A deviates from the national average more than Bank B. OFI could generate high returns by serving specialized markets, impacting the bank's portfolio deviating from the national average. hi.. Suppose that an FI holds two loans with the following characteristics. Allocation of Loan Portfolios in Different Sectors (%) National Bank A 30% 50% 30 20 Sectors Commercial Consumer Real Estate Estimate A and og using the loan allocation deviation formula. 40 30 Oo(A) 16.33%; o(B) = 14.14% Oo(A) 17.32%; (B) = 20.0% O = Oo(A) 12.25%; o(B) = 14.14% Oo(A) = 14.14%; o(B) = 16.33% Bank B 10% 40 50 Assume the same information as in the previous question . Which of the following observations concerning the Loan Volume- Based models and the Loan allocation deviation is not true? O Bank B deviates from the national average more than Bank A. O Deviation from the national benchmark is not necessarily bad. O Bank A deviates from the national average more than Bank B. OFI could generate high returns by serving specialized markets, impacting the bank's portfolio deviating from the national average
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started