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NEED THE ST DV FOR BANKS A AND B READ!!!! ST DV FOR BANK A IS INCORRECT Consider two local banks. Bank A has 8
NEED THE ST DV FOR BANKS A AND B READ!!!! ST DV FOR BANK A IS INCORRECT
Consider two local banks. Bank A has loans outstanding, each for $ million, that it expects will be repaid today. Each loan has a 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 $ million outstanding, which it also expects will be repaid today. It also has a 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.
a The expected overall payoff of each bank.
The expected overall payoff of Bank A is $ million. Round to two decimal places.
The expected overall payoff of Bank B is $ million. Round to two decimal places.
b The standard deviation of the overall payoff of each bank.
The standard deviation of the overall payoff of Bank A is YRound to four decimal places.
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