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The standard deviation (volatility) of the average rate of return on bank assets in the U.S. banking system: a. Is a good approximation to the
The standard deviation (volatility) of the average rate of return on bank assets in the U.S.
banking system:
a. Is a good approximation to the average volatility of individual bank returns.
b. Likely understates the average volatility of individual bank returns.
c. Likely overstates the average volatility of individual bank returns.
d. Is a reasonable guide to the level of riskiness in the banking system.
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