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nformation concerning the allocation of loan portfolios to different market sectors is given below: Allocation of Loan Portfolios in Different Sectors (%) Sectors National Bank

nformation 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 20% 55% 45%

Consumer 55% 15% 30%

Real Estate 25% 30% 25%

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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