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Please answer #13 and correct #14 if wrong please. Thank you. Use the following information to answer questions 13 and 14. A financial institution has
Please answer #13 and correct #14 if wrong please. Thank you.
Use the following information to answer questions 13 and 14. A financial institution has the following loan portfolio: Loans Loan amount (in millions) Expected Return [E(R)] Variance of Return, ai A $40 $20 $30 12% | 15% 18% c 13) What is the FI's expected return on its loan portfolio? 14) What is the risk (standard deviation of returns) on the bank's loan portfolio if loan returns are uncorrelated (p = 0)? s:/12-15)*7 (15-15)?#(18-15)||(3-1)Step by Step Solution
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