Question
Information concerning the allocation of loan portfolios to different market sectors is given below. Allocation of Loan Portfolios in Different Sectors (%) Sectors National Bank
Information concerning the allocation of loan portfolios to different market sectors is given below.
| Allocation of Loan Portfolios in Different Sectors (%) | |||
| Sectors | National | Bank A | Bank B |
| Commercial | 30% | 50% | 10% |
| Consumer | 40 | 30 | 40 |
| Real Estate | 30 | 20 | 50 |
Bank A and Bank B would like to estimate how much their portfolios deviate from the national average.
Which bank is further away from the national average?
Is a large standard deviation necessarily bad for an FI using this model?
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
