The standard deviations and correlations between retums on asset and liability categories (excepting equity) are as follows: (STA)=02,rSTA,US=0,rSTA,L=0,rSTA,STL=0,rSTA,D=0,(US)=04,rUS,L=8,rUS,STL=0,rUS,D=3,(L)=07,rL,STL=0,rL,D.(STL)=.02,rSTL,D=0.(D)=.03. (a) What is the standard deviation of the equity holder's position? (b) Suppose the bank decides to hedge by taking a position in T-bond futures contracts. You are given the following information: VTB=$90,000 for a $100,000 face value T-bond contract, TB=.08,rTB,STA=0,rTB,L=.5,rTB,STL=0,rTB,D=.3. Should the bank take a long or short position in T-bond futures? How many futures contracts should they buy/sell? How much is the standard deviation of equity reduced